WORLD TRADE  
ORGANIZATION  WT/REG198/4 
15 September 2008 
 (08-4272) 
Committee on Regional Trade Agreements  
 
 
 
 
  
 
 
 
FACTUAL PRESENTATION 
 
Economic Partnership Agreement between 
Japan and Mexico 
(Goods and Services) 
 
Report by the Secretariat 
 
 
 
 
This report, prepared for the considerati on of the Economic Partnership Agreement 
between Japan and Mexico has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with th e Parties.  The report has been drawn up 
in accordance with the rules and proce dures contained in the Decision for a 
Transparency Mechanism for Regi onal Trade Agreements (WT/L/671). 
 
Any technical questions arising from this report may be addressed to Ms Juneyoung Lee (tel: +41 22 739 6791).  WT/REG198/4 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
  Page 
 
I. TRADE ENVIRONMENT 1  
A. MERCHANDISE TRADE  1  
B. TRADE IN SERVICES AND INVESTMENT  5  
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 8  
A. BACKGROUND INFORMATION  8  
B. TRADE IN GOODS  10  
1. National treatment and market acces s provisions on trade in goods 10  
(a) Import duties and charges, and quantitative restrictions 10  
(b) Rules of origin 17  
(c) Export duties and charges, and quantitative restrictions 18  
2. Regulatory provisions on trade in goods 18  
(a) Standards 18  
(b) Safeguard mechanisms 19  
(c) Anti-dumping and countervailing measures 21  
(d) Subsidies 22  
(e) Customs-related procedures 22  
C. TRADE IN SERVICES AND INVESTMENT  22  
1. Scope and definitions 22  
2. Denial of benefits 22  
3. General provisions on trade in services and investment 23  
(a) Market access 23  
(b) National treatment and MFN 23  
(c) Local presence and performance requirements 23  
(d) Movement of natural persons 24  
4. Non-conforming measures 27  
(a) Japan 27  
(b) Mexico 30  
5. Regulatory provisions on trade in services 33  
(a) Domestic regulation 33  
(b) Recognition 33  
6. Liberalization commitments in selected services sectors 33  
(a) Financial services 33  
(b) Maritime transport services 34  
D. GENERAL PROVISIONS OF THE AGREEMENT  34  
1. Exceptions 34  
2. Accession and termination 34  
3. Institutional framework 35  
4. Dispute settlement 35  
5. Relationship with other agreements concluded by the Parties 37  
6. Government procurement 38  
7. Intellectual property rights 38  
8. Competition policy 39  
Annex I   40  
Annex II  44  
  
  WT/REG198/4 
 Page 1 
 
 
  JAPAN-MEXICO ECONOMIC PARTNERS HIP AGREEMENT (GOODS & SERVICES) 
 
Factual Presentation by the Secretariat  
 
 
I. TRADE ENVIRONMENT 
1. The Economic Partnership Agreem ent (EPA) between Japan and Me xico (hereinafter referred 
to as "the Agreement") is Japan's first cross-re gional EPA and Mexico's first EPA with an Asian 
country. 
2. Japan was Mexico's 8th largest merchandise export market (0.64% of Mexico's exports) in 
2006.1  Mexico's top five export destinations are:  the United States (84.9%), European Communities 
(EC25) (4.4%), Canada (2.1%), Colombia (0.9%) and the Bolivarian Republic of Venezuela (0.7%).  
Japan is Mexico's fourth largest import source w ith 6% of the total value of imports after the 
US (51.1%), EC25 (11.4%) and China (9.5%).2  Mexico is Japan's 30th import source (0.49% of 
Japan's imports) and 14th export (1.43% of Japan's exports) destination.3 
3. Japan's GDP was estimated at US$4,340 billi on in 2006, while that of Mexico was 
US$839 billion in the same year.  With total mercha ndise exports of US$647 billion and imports of 
US$579 billion, Japan ranked in 2006 as the world's fourth exporter and fifth importer;  with 
merchandise exports of US$250 billi on and imports of US$268 billion,  Mexico ranked as the world's 
15th exporter and the 14th importer in that year.4 
A. MERCHANDISE TRADE  
4. Recent developments in global and intra-Party trad e are presented in Charts I.1 and I.2.  Over 
the period surveyed (1999-2006), Mexico has run a c onsistent and growing trade deficit with Japan.  
Japan's exports to Mexico have grown particularly  rapidly since 2003, while Mexico's exports to 
Japan have been subject to considerable fluctuation since 1999.5 
 
                                                      
1 UNSD, Comtrade database (2006).  Data on the co untries of the EC are reported individually in the 
Comtrade database. 
2 WTO Statistics Database, Trade Profiles (April 2008). 
3 UNSD, Comtrade database (2006).  
4 WTO Statistics Database, Trade Profiles (April 2008). 
5 There is a discrepancy in the trade data reported by Japan and Mexico to Comtrade due to the use of 
different accounting methods for calculating trade data. WT/REG198/4 
Page 2 
 
 
  060120180240300360420480540600660720780
1999 2000 2001 2002 2003 2004 2005 200602468101214161820US$billion US$billionChart I.1 - Japan: merchandise imports from and exports to world 
and Mexico, 1999-2006
Source: UNSD, Comtrade database.Imports from Mexico
Exports to MexicoTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
020406080100120140160180200220240260280300
1999 2000 2001 2002 2003 2004 2005 2006024681012141618202224262830US$billion US$billionChart I.2 - Mexico: merchandise imports from and exports to world 
and Japan, 1999-2006
Source: UNSD, Comtrade database.Imports from Japan
Exports to JapanTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
 
 
  WT/REG198/4 
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  5. The commodity structure of trade among the Parti es, as well as of their imports and exports to 
the world in the period 2002-2004, is shown in Ch art I.3 on the basis of Harmonized System (HS) 
section. 
6. Japan's four largest export product categories – machinery, vehicles, chemicals and base 
metals – made up 79.8% of its  total exports in 2002-2004 and accounted for 83.8% of Mexico's 
imports from Japan.  Mexico's four largest export product categories – machinery, vehicles, mineral 
products and textiles – made up 74.2% of its tota l exports in 2002-2004 and accounted for 55% of 
Japan's imports from Mexico.  Other major imports  from Mexico are animal products (13.4% of 
imports from Mexico) and vegetables (8.1%). 
 WT/REG198/4 
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  Chart I.3
Japan and Mexico: product composit ion of merchandise trade, annual 
average (2002-2004)
Japan's imports from Mexico Mexico's imports from Japan
 Source:  UNSD, Comtrade database.Per cent
Total:  US$2.0 billionTotal:  US$9.2 billion
Total:  US$392.1 billion Total: US$178.7 billion
Total:  US$484.8 billion Total:  US$171.2 billionJapan's global exports Mexico's global exportsJapan's global imports Mexico's global importsMachinery
27.2Other
3.1Prepared Foods
2.1
Mineral Products
14.5
Animal Products
13.4Vehicles
12.0Vegetables
8.1Optical
5.3Chemicals
4.9Miscellaneous
4.7Pearls
3.2
Machinery
61.5Other
6.2 Chemicals
3.2Plastics,Rubber
4.5
Optical
5.6
Base Metals
7.8
Vehicles
11.3
Machinery
23.4Other
7.5Plastics,Rubber
4.2 Miscellaneous
2.3
Articles of Wood
2.7Vegetables
3.6
Mineral Products
23.3Prepared Foods
3.9
Vehicles
4.2
Base Metals
4.4
Optical
4.5
Live Animals
5.1Textiles
6.2Chemicals
6.8Machinery
39.5Other
9.2Pulp of Wood
2.7Vegetables
2.8
Optical
3.2
Mineral Products
3.8
Textiles
5.1
Chemicals
7.3
Plastics,Rubber
7.9
Base Metals
8.2Vehicles
10.4
Machinery
42Other
9.8 Plastics
4.0
Optical
6.3
Base Metals
6.6
Chemicals
6.9
Vehicles
24.3Machinery
40.5Other
4.2Prepared Foods
2.2 Plastics,Rubber
2.4Vegetables
2.4
Chemicals
3.0
Optical
3.4
Miscellaneous
3.6
Base Metals
4.5
Textile
5.7
Mineral Products
11.3
Vehicles
16.7Textile
1.3
 
  WT/REG198/4 
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  B. TRADE IN SERVICES AND INVESTMENT6 
7. In 2006, Japan ranked fourth in the world both for exports and imports of commercial 
services.  Its commercial services exports amounted  to US$122 billion, representing 4.43% of world 
exports, while imports amounted to  US$144 billion and represented 5.48% of world imports.  In the 
same year, Mexico ranked 34th in the world in terms of world exports of commercial services and 31st 
in terms of world imports.  Its commercial servi ces exports amounted to US$16 billion, representing 
0.6% of world exports, while imports amounted to US$22 billion, representing 0.85% of world 
imports.7 
8. Chart I.4 shows the breakdown of commercial se rvices trade for Japan in 1999-2006.  Total 
exports of commercial services have risen stead ily during the period and especially since 2002.  
Imports have grown more slowly.  The main cont ributors to both imports and exports of services 
during this period have been transportation, an d other business services.  These sectors accounted for 
almost 60% of services exports a nd 53.5% of imports in 2006. 
0102030405060708090100110120130140
1999
200020012002
2003
2004200520060102030405060708090100110120130140
1999
20002001
200220032004
20052006Chart I.4
Japan, total commercial services trade, 1999-2006
Exports Imports
Transportation services
Travel services
Sourc e: IMF, BOP CD-Rom.Communications servicesUS$ billion
Construction servicesFinancial services
Computer and information services
Royalties and license Other business services
Personal and cultural services
Government servicesUS$ billion
 Insurance services
Note:     Exports of insurance services were negative in the following years: 1999 (US$ -80 million),
              2001 (US$ -100 million), and 2002 (US$ -380 million).
 
                                                      
6 The exchange rate used for converting data in Japanese Yen to US dollars in this section was: 
125.39 Yen per US dollar (2002), 115.93 (2003), 108.19 (2004), 110.22 (2005) and 116.30 (2006). 
7 WTO Statistics Database, Trade Profiles (April 2008). WT/REG198/4 
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  9. Chart I.5 shows the breakdown of commercial services trade for Mexico in 1999-2006.8  
Exports have risen more slowly than imports durin g this period.  Travel services account for the bulk 
of its exports with significant shares for transporta tion and insurance services.  Imports of commercial 
services have been mainly driven by insu rance, travel and transportation services. 
024681012141618202224
1999
2000
20012002
2003
20042005
2006024681012141618202224
1999
2000
2001
2002
2003
2004
2005
2006Chart I.5
Mexico, total commercial s ervices trade, 1999-2006
Exports Imports
Transportation services
Travel services
Source: IMF, BOP CD-Rom.Communications servicesUS$ billion
Financial services
Royalties and license Other business services
Personal and cultural services
Government servicesUS$ billion
 Insurance services
 
 
10. Japan's global investment position is depicted in Chart I.6.  Japan's inward stock of foreign 
direct investment (FDI) increased 47% over the period 2002-2006, while its stock of outward FDI 
increased by 58% over the same period. 
 
                                                      
8 Mexico notes that figures on its services trade fl ows are difficult to obtain since neither governmental 
agencies nor private institutions have developed strict  methodologies to record or develop accurate data.  WT/REG198/4 
 Page 7 
 
 
  0102030405060708090100110120
2002 2003 2004 2005 2006050100150200250300350400450500
2002 2003 2004 2005 2006Chart I.6 
Japan inward and outward foreign direct investment stock from  world, 2002-2006
Inward Outward
Source: WTO Secretariat estimates based on data at http://www.boj.or.jp/en.US$ billion
 
11. Chart I.7 which shows Japan's inward and outwar d stock of FDI with Mexico over the period 
2002-2006 shows that Japan's FDI in Mexico accounted for 0.94% of its total outward FDI in 2005.  
After rising steadily between 2002 and 2005, Japan's FDI in Mexico fell sharply by 53% in 2006. 
Inward FDI from Mexico also fell marginally in 2006. WT/REG198/4 
Page 8 
 
 
  012345
2002 2003 2004 2005 200605001,0001,5002,0002,5003,0003,5004,000
2002 2003 2004 2005 2006Chart I.7 
Japan inward and outward foreign direct investment stock with Mexico, 2002-2006
Inward Outward
Source: WTO Secretariat estimates based on data at http://www.boj.or.jp/en.US$ million
 
 
II. CHARACTERISTIC ELEMEN TS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
12. The Agreement was signed by Japan and Me xico on 17 September 2004 and entered into 
force on 1 April 2005. 
13. The goods and services aspects of the Agreement were notified to the WTO by the Parties on 
31 March 2005 under Article XXIV of the GATT 1994 and the Understanding on the Interpretation of 
Article XXIV of GATT 1994, and Article V of the GATS, respectively (WT/REG198/N/1 and 
S/C/N/328).  The text of the Agreement was circ ulated to Members as document WT/REG198/1, and 
is also available, together with its relate d annexes, on the following official website: 
Japan: http://www.mofa.go.jp/policy/economy/fta/mexico.html  
Mexico: http://www.economia.gob.mx/?P=2120   WT/REG198/4 
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  14. The Agreement is composed of 18 Chapte rs and has related Annexes, as follows: 
Box II.1:  Composition of the Agreement 
Preamble 
Chapter 1:  Objectives  
Chapter 2:  General Definitions  
Chapter 3:  Trade in Goods  
Chapter 4:  Rules of Origin  
Chapter 5:  Certificate of Orig in and Customs Procedures   
Chapter 6:  Bilateral Safeguard Measures  
Chapter 7:  Investment 
Chapter 8:  Cross-Border Trade in Services  
Chapter 9:  Financial Services 
Chapter 10:  Entry and Temporary Stay of Nationals for Business Purposes   
Chapter 11:  Government Procurement  
Chapter 12:  Competition   
Chapter 13:  Improvement of the Business Environment   
Chapter 14:  Bilateral Cooperation  
Chapter 15:  Dispute Settlement   
Chapter 16:  Implementation and Operation of the Agreement   
Chapter 17:  Exceptions   
Chapter 18:  Final Provisions  
Annexes 
   Annex 1 referred to in Chapter 3 – Schedules in relation to Article 5  
   Annex 2 referred to in Chapter 3 – Meas ures of Mexico in relation to Article 7  
   Annex 3 referred to in Chapter 3 – Geographical Indications for Spirits  
   Annex 4 referred to in Chapter 4 – Specific Rules of Origin  
   Annex 5 referred to in Chapter 5 – Origin Verifications 
   Annex 6 referred to in Chapters 7 and 8 – Reservations for Existing Measures  
   Annex 7 referred to in Chapters 7 and 8 – Reservations for Future Measures 
   Annex 8 referred to in Chapter 7 – Activities Reserved to the State  
   Annex 9 referred to in Chapter 7 – Exemptions from Most-Favoured-Nation Treatment    
   Annex 10 referred to in Chapter 10– Categories of Entry and Temporary Stay of Nationals for Business 
Purposes   
   Annex 11 referred to in Chapter 11– Entities  
   Annex 12 referred to in Chapter 11 – Goods  
   Annex 13 referred to in Chapter 11 – Services  
   Annex 14 referred to in Chapter 11 – Construction Services 
   Annex 15 referred to in Chapter 11 – Thresholds  
   Annex 16 referred to in Chapter 11 – General Notes of Mexico 
   Annex 17 referred to in Chapter 11 – Publications  
   Annex 18 referred to in Chapter 11 – Procurement Procedures  
 
Source : Economic Partnership Agreemen t between Japan and Mexico. 
 
15. No overall implementation period is explicitly stated  in the Agreement.  However, the Parties' 
schedules of concessions on trade in goods foresee an implementation period of ten years for the 
Parties from the date of entry into force of the Agreement. WT/REG198/4 
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  B. TRADE IN GOODS  
1. National treatment and market access provisions on trade in goods 
(a) Import duties and charges, and quantitative restrictions 
(i) General provisions 
16. Each party accords national treatment to the goods of the other Party in accordance with 
Article III of the GATT 1994 (Article 3). 
17. The Parties agree to eliminate or reduce cust oms duties on originating goods as scheduled in 
Annex 1 of the Agreement and not to raise cu stoms duties on originating goods from the level 
provided for in the schedules (Article 5).  A nnex 1 contains 15 categories relating to tariff 
liberalization between the Parties: i) the immediat e elimination of customs duties from the entry into 
force of the Agreement (A);  ii) the progressive e limination of customs duties using various methods 
of calculation (B1-B2, B4-B8, C, Ca, and D);  iii) elimination of duties from the eleventh year (2015) 
(E);  iv) reductions in customs duties (P specified in  the note in column 5 in the schedules);  v) tariff-
rate quotas (Q);  and vi) exclusion from liberalization (X).9  In addition, there are some lines subject 
to consultation (R).10  With the exception of the year of entry into force, tariff reductions take place on 
1 April of each year. 
18. For products that are subject to consultation (R),  under Article 5.3.(a).(i), and Sections 2-3 of 
Annex I the Parties agreed to consult on improved market access after the third year from the entry 
into force of the Agreement.  The Parties may also  request consultations for further liberalization of 
goods four years after the date of entry into force of the Agreement (Article 5.3.(a).(ii)).  Article 
5.3.(a).(ii) shall not apply to the originating go ods referred to in Article 5.3.(a).(i) while the 
consultation on the originating goods  is held under the terms and co nditions referred to in Article 
5.3.(a).(i) (Article 5.3.(b)).  The Parties will also consult to consider further trade liberalization for 
goods listed in Annex 1 in light of the results of  multilateral trade negotiations (Article 5.4). 
19. The Parties agree not to institute or maintain any prohibitions or restrictions on imports from 
each other, other than customs duties, which are inc onsistent with their obligations under Article XI of 
the GATT 1994 and relevant provisions under the WTO Agreement (Article 7.1).  Mexico has listed 
current restrictions and prohibitions on imports a nd exports in Annex;  under the Agreement these can 
be maintained, provided that they are consistent  with Mexico's rights and obligations under the 
WTO Agreement (Article 7.2) and do not accord more  favourable treatment to non-Parties, including 
with which Mexico has concluded an agreem ent under Article XXIV of the GATT 1994 and the 
Understanding on the Interpretation of Article XXIV of the GATT 1994.  The measures mainly 
concern HS Chapters 27 and 87.11  
(ii) Liberalization of trade and tariff lines 
20. Trade in goods under the Agreement is classified under the 2002 nomenclature of the 
Harmonized System (HS) (Article 4).  The elimina tion of tariffs applicable between the Parties is 
scheduled in Annex 1. 
                                                      
9 For some of category X lines, there is partial liberalization. 
10 General notes in Section 1, Annex 1 of the Agreement;  and the preambles of Sections 2 and  3, 
Annex 1 of the Agreement.  
11 These Chapters relate to mineral fuels and oils, and motor vehicles.  WT/REG198/4 
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  21. The overall tariff elimination under the Agreem ent is depicted in Tables II.1.A and II.1.B 
below.  Japan's MFN tariff schedule in the year of entry into force of the Agreement (2005) comprised 
9,111 tariff lines at the HS 9-digit level, out of which 603 held non ad valorem  duties.12  For the lines 
with non ad valorem  rates, ad valorem  equivalents were not provided;  the Secretariat has used only 
the ad valorem  component of the tariff lines subject to alternate and compound rates of duty in the 
tariff calculations in this presentation.  Table II.1. A shows duty elimination in terms of tariff lines and 
trade, as applied by Japan to imports from Mexico .  Before the entry into  force of the Agreement 
3,797 tariff lines (41.7% of Japan's tariff) were already duty-free on an MFN basis.  Upon entry into force of the Agreement, an additional 3,367 ta riff lines (37% of the tariff) became duty-free for 
imports from Mexico;  as a result, 78.7% of Jap an's tariff lines became duty-free corresponding to 
74.9% of imports by value from Mexico.  The remain ing tariffs are to be progressively eliminated in 
six additional stages, in 2008;  2009;  2010-2011;  2 012-2013;  2014;  and 2015.  By 2014, after nine 
years of implementation, a further 675 lines are to become duty-free (7.4% of Japan's tariff lines) 
amounting to 11.2% of the value of imports from Mexico.  By the end of implementation in 2015, 
87% of tariff lines and 86.1% imports by value from Mexico will be duty-free. 
Table II.1 
Tariff elimination commitments under the Ag reement and corresponding average trade  
A: Japan 
Duty phase-out 
period Number of lines % of total lines in 
Japan's tariff schedule Value of Japan's imports 
from Mexico (2002-2004) 
in million US$ % of total Japan's 
imports from Mexico 
2002-2004 
MFN duty-free 
(2005) 3,797 41.7 1,212.9 64.0 
2005 3,367  37.0 206.1 10.9 
2006-2007* 25  0.3 74.5 3.9 
2008 59  0.6 2.9 0.2 
2009 94  1.0 0.0 0.0 
2010-2011* 87  1.0 48.7 2.6 
2012-2013* 163  1.8 84.5 4.5 
2014 247  2.7 0.0 0.0 
2015 92  1.0 3.1 0.2 
Remain dutiable 1,180  13.0 262.6 13.9 
Total 9,111 100.0 1,895.4 100.0 
 
* The number of duty free lines remain s the same as in the previous year. 
Note: Based on the HS 2002 nomenclature.  Ca lculations exclude tariff lines having an in-quota rate and import data under Chapt er 99. 
 
Source: WTO Secretariat estimates based on data provided by Japan and WTO-IDB. 
 
22. Mexico's MFN tariff schedule in the year of  entry into force of the Agreement (2005) 
comprised 11,907 tariff lines at the HS 8-digit level, out of which 59 held non ad valorem  duties13;  
imports under 22 tariff lines are prohibited.  For the lines with non ad valorem  rates, ad valorem  
equivalents were not provided;  the Secretariat has used the ad valorem  component of the compound 
rates in the tariff calculations in this presentation.   Table II.1.B shows Mexico's duty elimination in 
terms of tariff lines and trade, applied to Japan.  Before the entry into force of the Agreement 
2,113 tariff lines (17.7% of Mexico's tariff) were already duty-free on an MFN basis.  Between 2005 
and 2007, an additional 2,615 tariff lines (22 % of tariff lines) became duty-free for imports from 
Japan;  as a result, 39.7% of Mexico's tariff lin es became duty-free, corresponding to 62.2% of 
imports by value from Japan.  The remaining tariffs are to be progressively eliminated in seven stages, 
                                                      
12 Of these 246 are subject to specific rates, 56 compound rates, and 301 alternate rates. 
13 Of these 13 are subject to specific rates and 46 to compound rates.  WT/REG198/4 
Page 12 
 
 
  in 2008;  2009;  2010;  2011;  2012-2013;  2014;  and 2015.  The majority are to be liberalized by 
2014, after nine years of implementation, with a fu rther 6,101 tariff lines (51.2% of Mexico's tariff) 
becoming duty-free, amounting to 33.2% of the value of imports from Japan.  By the end of the implementation period in 2015, 94.1% of tariff lines  and 98.9% of the value of imports from Japan 
will be duty-free. 
Table II.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
B. Mexico 
Duty phase-out 
period Number of lines % of total lines in 
Mexico's tariff 
schedule Value of Mexico's imports 
from Japan (2002-2004) 
in million US$ % of total Mexico's 
imports from Japan 
2002-2004 
MFN duty free 
(2005) 2,113 17.7 3,833.4 45.8 
2005-2007*  2,615 22.0 1,375.0 16.4 
2008 23 0.2 0.0 0.0 
2009 970 8.1 322.5 3.9 
2010 52 0.4 0.5 0.0 
2011 20 0.2 536.9 6.4 
2012-2013* 109 0.9 8.0 0.1 
2014 4,927 41.4 1,906.3 22.8 
2015 370 3.1 287.4 3.4 
Remain dutiable 708 5.9 96.2 1.1 
Total 11,907 100.0 8,366.1 100.0 
 
* The number of duty free lines remain  the same as in the previous year. 
Note: Based on the HS 2002 nomenclature.  Ca lculations exclude tariff lines having an in-quota rate and import data under Chapt er 98. 
 
Source:  WTO Secretariat estimates based on data provided by Mexico. 
 
(iii) Japan's liberalization schedule 
23. Table II.2 shows Japan's tariff elimination commitments vis-à-vis Mexico by HS section 
product categories.  Of the remaining 1,947 tariff lines subject to duty after entry into force of the 
Agreement, 265 lines are to be fully liberalized by 2011;  they include mostly textiles and textiles 
articles;  prepared food;  vegetable products;  and wood and wooden articles.  The additional 
502 tariff lines to be fully liberalized by 2015 are also  mostly textiles and textiles articles, and hides 
and skins. 
Table II.2 
Japan: Tariff elimination under the Agreement, by HS section  
Number of duty-free lines  HS section and 
description  MFN 
avg. 
% Total 
no of 
lines  MFN 
2005  2005  2006-
2007*  2008  2009  2010-
2011*  2012-
2013*  2014  2015  Remain 
dutiable  
I Live animals and 
animal products 8.6 503 104 144  2  4    249 
II Vegetable 
products 6.1 527 164 56  19  27 6  1 254 
III Animal or 
vegetable fats and 
oils 3.8 85 20 3    3 6   53 
IV Prepared food 
etc. 16.3 762 78 67  9  48 28  31 501 
V Minerals 0.6 218 156 36 25   1     
VI Chemicals and 
chemical products 2.2 1,054 425 595      2  32  WT/REG198/4 
 Page 13 
 
 
  Number of duty-free lines  HS section and 
description  MFN 
avg. 
% Total 
no of 
lines  MFN 
2005  2005  2006-
2007*  2008  2009  2010-
2011*  2012-
2013*  2014  2015  Remain 
dutiable  
VII Plastics and 
rubber 2.4 305 106 199         
VIII Hides and 
skins 10.3 208 69 1     76  32 30 
IX Wood and 
articles 3.3 237 88 64  29 5 4  10  37 
X Pulp, paper etc. 0.0 172 172          
XI Textiles and 
textiles articles 6.5 2,149 92 1,733   83   235  6 
XII Footwear, 
headgear 16.3 117 6 25     40  28 18 
XIII Articles of 
stone 1.1 164 103 59     2    
XIV Precious 
stones, etc. 1.3 80 58 22         
XV Base metals 
and base metals 
products 0.9 844 604 234   6      
XVI Machinery 0.1 984 970 14         
XVII Transport 
equipment 0.1 153 152 1         
XVIII Precision 
equipment 0.2 309 300 6     3    
XIX Arms and 
ammunition 6.9 24  24         
XX Misc. 
manufactured 
articles 1.6 209 123 84     2    
XXI Works of art, 
etc. 0.0 7 7          
Total 4.8 9,111 3,797 3,367 25 59 94 87 163 247 92 1,180 
 
* The number of duty free lines remain s the same as in the previous year. 
Note Based on the HS 2002 nomenclature;  for  tariff lines subject  to TRQs only the out-of-quota duty is included in the tariff -related 
calculations. 
 
Source:   WTO Secretariat estimates ba sed on data provided by Japan. 
 
24. The 1,180 tariff lines that will remain dutiable at the end of implementation period (2015) are 
mainly agricultural products, such as prepared food;  vegetable products;  and live animals and animal 
products.  These lines include products excluded from liberalization (1,032 tariff lines, mainly 
HS Chapters 3-4, 11, and 19-21), products subject to consultation (35 tariff lines, mainly HS Chapters 
8, 11, 17 and 20), categories Q containing TRQs (79 ta riff lines, mainly HS Chapters 2, 16, 20 and 29) 
and P containing products whose duty is to rema in unchanged until 2015 (8 tariff lines, HS 
Chapters 2, 3 and 16), and other pr oducts whose duty is to be reduced  or remained equivalent to MFN 
(26 tariff lines, mainly HS Chapters 4, 8, 11, 20 and 22).  Chart II.1 below shows the composition of 
these categories. 
 
 
 
  
 
  
 
  WT/REG198/4 
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Chart II.1 
Japan's
Remaining Dutiable Lines
Excluded Rice Category Q Consultation Category P OthersOthers 
(2.2%)
Rice  (Excluded)
(0.3%)Excluded 
(87.1%)Category P
(0.7%)
Category Q
(6.7%)Consultation
(3.0%)
 
Source: WTO Secretariat estimates base d on data provided by Japan. 
 
(iv) Mexico's liberalization schedule 
25. Table II.3 shows Mexico's tariff elimination commitments vis-à-vis Japan by HS section 
product categories.  Of the remaining 7,179 tariff lines subject to duty after entry into force of the Agreement, 1,065 are to be fully liberalized by 2011, after six years of implementation;  they include 
mostly chemicals and chemical products, preci sion equipment, and base metals and products.  
However, the largest share of the tariff, 4,927 lin es, is to be liberalized after nine years of 
implementation, including chemicals and machinery.  The additional 370 lines to be fully liberalized 
by 2015 are mostly base metals and base metals products. 
Table II.3 
Mexico: Tariff elimination under the Agreement, by HS section 
HS section and 
description  Number  of duty-free lines  Remain 
dutiable  
 
MFN 
average%  
Total No of 
lines  
MFN 2005  
2005-
2007*  
2008*  
2009  
2010  
2011  
2012-
2013*  
2014  
2015   
I Live animals and 
animal products 33.5 323 34 132 2  5     150 
II Vegetable products 16.3 468 88 160 13  22  8   177 
III Animal or 
vegetable fats and oils 20.4 69 1 15     3   50 
IV Prepared food etc. 22.8 337 6 94 2  15  20  4 196 
V Minerals 8.5 210 35 108  18 2   47   
VI Chemicals and 
chemical products 8.1 2,828 856 162  172    1,590  48 
VII Plastics and rubber 13.5 566 37 30  37    462   
VIII Hides and skins 15.2 122 8 32  2   37  24 19 
IX Wood and articles 15.6 137 3 80 6  8   22  18 
X Pulp, paper etc. 9.5 299 35 20  6    236  2  WT/REG198/4 
 Page 15 
 
 
  HS section and 
description  Number  of duty-free lines  Remain 
dutiable  
 
MFN 
average%  
Total No of 
lines  
MFN 2005  
2005-
2007*  
2008*  
2009  
2010  
2011  
2012-
2013*  
2014  
2015   
XI Textiles and 
textiles articles 20.7 1,245 35 678  96    434  2 
XII Footwear, 
headgear 29.3 100  3  14   40 13 13 17 
XIII Articles of stone 15.2 293 3 50  80    160   
XIV Precious stones, 
etc. 9.2 65 23 13  16    13   
XV Base metals and 
base metals products 12.3 1,231 78 148  128    548 329  
XVI Machinery 10.0 2,474 741 521  93    1,119   
XVII Transport 
equipment 15.4 381 24 109  105  20  94  29 
XVIII Precision 
equipment 10.8 464 87 168  135    74   
XIX Arms and 
ammunition 15.6 33 2 31         
XX Misc. 
manufactured articles 17.4 248 3 61  68   1 115   
XXI Works of art, etc. 0.0 14 14          
Total 13.1 11,907 2,113 2,615 23 970 52 20 109 4,927 370 708 
 
* The number of duty free lines remain  the same as in the previous year. 
Note: Based on the HS 2002 nomenclature;  for tariff lines subject  to TRQs only the out-of-quota duty is included in the tariff -related 
calculations. 
 
Source:   WTO Secretariat estimates based on data provided by Mexico. 
 
26. The 708 tariff lines that will remain dutiable at  the end of implementation period (2015) are 
mainly agricultural products, such as prepared food;  vegetable products;  and live animals and animal 
products.  These include lines that are excluded from liberalization (517 tariff lines – mainly 
HS Chapters 2-4, 7-9, 11, 15, and 19-21), or subject to consultation (22 tariff lines – mainly 
HS Chapters 17 and 20), category Q containing TRQs (44 tariff lines – mainly HS Chapters 2, 16 and 20), duty reductions based on different combination of  categories or whose tariff rates are to remain 
unchanged until 2015 (125 tariff lines – mainly HS Chap ters 3, 20, 44, 64 and 87).  Chart II.2 below 
shows the composition of these categories. WT/REG198/4 
Page 16 
 
 
  Chart II.2 
Mexico's
Remaining Dutiable Lines
Excluded Category Q Consultation Rice OthersExcluded
 (72.3%)
Rice  (Excluded)
(0.7%)Others
(17.7%)
Category Q
(6.2%)Consultation
(3.1%)
 
Source: WTO Secretariat estimates based on data provided by Mexico. 
 
(v) Tariff-rate quotas 
27. Both Parties maintain complex tariff-rate  quota (TRQ) schemes – 27 and 18 schemes for 
Japan and Mexico, respectively. 
28. Japan maintains TRQs on 217 tariff lines;  these are mainly for raw hides and skins 
(HS Chapter 41 -66 tariff lines);  meat and edible  meat offal (HS Chapter 2 – 43 tariff lines);  
footwear (HS Chapter 64 – 31 tariff lines);  and arti cles of leather (HS Chapter 42 – 33 tariff lines).  
Details of the quantities and rates applying to these lin es are given in Table AII.1.  The in-quota rates 
for most of these products are zero, while imports above the quota enter at the prevailing MFN rates;  
in some cases, notably, bananas, leather products, so me footwear, glass, clocks and furniture, the out-
of-quota rates are less than the applied MFN rates.  The quotas are to be eliminated in 2012 for tariff 
lines relating to raw hides and skins and leather, articles of leather, footwear, glass, clocks and 
furniture; in 2015 for bananas, raw hides and skins and leather and footwear.  By the end of the 
implementation period  62.7% of all TRQs are to be eliminated. 
29. Mexico maintains TRQs on 182 tariff lines;  these are mainly for raw hides and skins 
(HS Chapter 41 – 33 tariff lines);  footwear (HS Chapter 64 – 24 tariff lines);  articles of leather 
(HS Chapter 42 – 22 tariff lines);  articles of iron or steel (HS Chapter 73 – 20 tariff lines);  and 
vehicles other than railway or tramway rolling-stoc k (HS Chapter 87 – 20 tariff lines).  Details of the 
quantities and rates applying to these lines are given in  Table AII.2.  The in-quota rates for most of 
these products are zero, while imports above the quota enter at the prevailing MFN rates, the 
exception being motor vehicles (HS Chapter 87), for wh ich the out-of-quota rates are less than the  WT/REG198/4 
 Page 17 
 
 
  base MFN rates.14  The TRQs are to be eliminated in 2011  for motor vehicles;  in 2012 for some 
articles of leather, raw hides, skins and leather, and footwear and furniture;  in 2015 for bananas and 
some lines relating to raw hides, skins and leather;  and iron and steel products.  By the end of the 
implementation period 68.6% of a ll TRQs are to be eliminated. 
30. Consultations under Article 5.3.(a).(i) were he ld between the Parties and resulted in the 
conclusion of a protocol which entered into force on 1 April 2007.15  The consultations involved 
products such as poultry meat (0207), beef (0202) and  fresh oranges (0805), which are scheduled 
under 1.(b), 4.(b), and 10.(b) respectivel y, of Sections 2 and 3 of Annex 1.   For these goods, Japan 
originally set quota quantities for the first five years but  in-quota rates were set either for the first year 
or the first two years following entry into force of  the Agreement.  Following these consultations, the 
in-quota rates for these products were set at rate s ranging from between 10-50% below the prevailing 
MFN rates  for the second to the fifth years, with consulta tions to take place again for the sixth year 
onwards to agree the quota quantities and in-quota rates for subsequent years. 
31. Mexico originally fixed quota quantities from the first to the second year or from the first to 
the fifth year, but in-quota duties of zero were fixed for only the first or the first two years.  Following 
consultations between the Parties, the in-quota rat es up to the fifth year were fixed at rates ranging 
from 10-50% below the prevailing MFN rates.  As in the case of Japan, the future quota quantities and 
in-quota duties for the sixth year onwards are subject to further consultations. 
(b) Rules of origin 
32. Disciplines regarding rules and certificates of origin, and customs procedures covered by the 
Agreement are set out in Chapters 4 and 5.  Ar ticles 22-38 deal with the rules of origin, while 
Articles 39-50 cover other customs-related issues. 
33. The general requirement for a good to be consider ed originating (Article 22.1) is that it is: 
wholly obtained or produced entirely in one or both Parties, as defined in Article 38; produced 
entirely in one or both Parties exclusively from orig inating materials;  satisfies the requirements of 
Annex 4, and other applicable requirements of Chapte r 4, if produced entirely in one of the Parties 
using non-originating materials;  or, except for a good of HS Chapters 61- 63, produced entirely in 
one or both Parties, but if one or more of the no n-originating materials used in its production do not 
undergo a change in tariff classification (CTC).  The regional value content of the good must not be 
less than 50%, unless otherwise provided for in Annex 4, and the good must satisfy all other 
applicable requirements of this Chapter. 
34. Under Article 22.2 a good using non-originating materials that undergo a CTC and satisfies 
other requirements set out in Annex 4 must be produ ced entirely in one or both Parties and its total 
regional value content entirely met in one or both Parties. 
35. Section 2 of Annex 4 sets out specific criteria for non-originating materials to meet in order 
for the final good to acquire originating status.  In  the majority of cases, origin is granted if the 
non-originating materials have undergone a CTC on the basis of HS headings or subheadings - i.e. at the four or six-digit level.  The CTC is supplemented with, or replaced by, a regional value 
requirement which establishes the mi nimum value of originating materials allowed in the final good 
for it to be considered originating.  It is expressed as a percentage of the regional value content.  The 
                                                     
 
14 The preferential rates which are ba sed on MFN rates in 2004 in the first year of the Agreement are 
higher than the applied MFN rates in 2005 for six lines (87041099AA, 87042201AA, 87043201AA, 87039001, 
87042101, and 87043101). 
15 WT/REG198/N/1/Add.1 (17 October 2007). WT/REG198/4 
Page 18 
 
 
  minimum value is mainly 50%, but there are also cases where it is 55%16, 65%17 or 90%18 (Section 2 
of Annex 4). 
36. Article 25 establishes a de minimis  principle whereby a product is considered to be 
originating if the value of all non-originating mate rials used in its production that do not undergo a 
CTC is no more than 10% of the transaction va lue of the goods, and the good satisfies all other 
applicable requirements of this Chapter (Article 25. 1).  This does not apply to certain HS Chapters 
(Article 25.4).  Cumulation between producers in one or both Parties is permitted (Article 27).  
37. Articles 29-33 define how certain materials (sets, k its or composite goods;  indirect materials;   
accessories, spare parts and tools;  packaging mate rials and containers for retail sale;  packing 
materials and containers for shipment) are to be  treated/valued when determining their origin. 
38. Under Article 35, originating goods shall be considered as non-originating, even if they 
satisfy the requirements of Article 22 if, they unde rgo:  further production;  operations other than 
unloading, reloading or any other operation necessar y to preserve them in good condition or for 
transport to the other Party;  or do not remain unde r the surveillance of the customs authorities in one 
or more non-Parties where they undergo transshipment or temporary storage. 
(c) Export duties and charges, and quantitative restrictions 
39. The Parties agree not to adopt or maintain a ny duties on their mutual exports (Article 6).  
Neither Party shall institute or maintain prohibiti ons or restrictions other than customs duties on 
imports from other Party or on the export, or sale for export, of any good destined for the other Party, 
which is inconsistent with its obligations under Article XI of th e GATT 1994 and relevant provisions 
under the WTO Agreement (Article 7). 
2. Regulatory provisions on trade in goods 
(a) Standards 
(i) Sanitary and phytosanitary measures 
40. The Parties reaffirm their existing rights and obligations under the WTO Agreement on 
Sanitary and Phytosanitary Measures (SPS) (Article 12). 
41. Article 13 provides for each Party to designate  an enquiry point to answer all reasonable 
enquiries from the other Party on SPS measures and to provide relevant information, if appropriate. 
42. On the date of entry into force of the Ag reement, a Sub-Committee on SPS measures was 
established for: exchanging information on SPS inci dents in the Parties and non-Parties, as well as 
modification or introduction of SPS-related regulations and standards by the Parties;  sharing 
information on potential SPS risks;  conducting scien ce-based consultations to  identify and address 
specific issues;  and carrying out other functions which may be delegated by the Joint Committee and, 
if necessary, establishing ad hoc technical adviso ry groups for technical information and advice 
(Article 14). 
                                                      
16 HS 64.01-64.05, HS 6406.10. 
17 HS 8407.31-8407.34, HS 8408.20, HS 8409.9 1-8409.99, HS 8483.10, HS 8511.10–8511.80, 
HS 8544.11-8544.60, HS 8544.70, most of the lines under Chapter 87 (vehicles other than railway or tramway 
rolling-stock, and parts and accessories thereof) listed in Section 2 of Annex 4. 
18 HS 9608.50 (ball point pens – sets of articles from two or more of the foregoing subheadings).  WT/REG198/4 
 Page 19 
 
 
  43. The dispute settlement provisions in Chapter 15 do not apply to SPS measures (Article 15).  
When a dispute arises, both Parties will try to solve their differences within the Sub-Committee on 
SPS measures with the guidance of the Joint Committ ee.  If this is not possible, both Parties could 
seek settlement under the WTO Understanding on Rul es and Procedures Governing the Settlement of 
Disputes. 
(ii) Technical barriers to trade 
44. The Parties reaffirm their existing rights and obligations under the WTO Agreement on 
Technical Barriers to Trade (TBT) (Article 16).  Su bject to the availability of appropriated funds and 
the applicable laws and regulations of each part y, the Agreement provides a framework to address 
cooperation in technical regulations, standards and conformity assessment procedures, such as: joint 
studies, seminars and symposia for enhancing mutu al understanding of domestic  technical regulations, 
standards and conformity assessment procedures;  exchanging government officials for training;  
contributing jointly to internati onal and regional fora;  and encouraging entities, other than the 
government of the Parties to engage in such cooperation (Article  17). 
45. Under Article 18 each Party designates an enquiry point to answer all reasonable enquiries 
from the other Party and to provide re levant information, if appropriate. 
46. Similar to SPS, on the date of entry into force of the Agreement, a Sub-Committee on 
technical regulations, standards and conform ity assessment procedures was established for: 
exchanging information on technical regulations, st andards and conformity assessment procedures;  
reviewing implementation and operatio n of Section 3;  reporting any findings to the Joint Committee;  
and carrying out other functions which may be delegated by the Joint Committee. (Article 19). 
47. The dispute settlement provisions of Chapter 15 do not apply to TBT measures (Article 21).  
When a dispute arises, both parties will try to solve their differences within the Sub-Committee on 
TBT measures with the guidance of the Joint Committ ee.  If this is not possible, both Parties could 
seek settlement under the WTO Understanding on Rul es and Procedures Governing the Settlement of 
Disputes. 
(b) Safeguard mechanisms 
(i) Global safeguards 
48. The Parties may take measures in accordance with the provisions of Article XIX of 
GATT 1994 and the WTO Agreement on Safeguards (Article 51.2). 
(ii) Bilateral safeguards 
49. The Parties are free to invoke bilateral safe guards subject to consistent, impartial and 
reasonable administration of laws, regulations, decisions and rulings governing such measures 
(Articles 51.1 and 52). 
50. As a result of the elimination or reduction of customs duties, if a good originating in one 
Party is imported by the other Party in such incr eased quantities, in absolute terms, and under such 
conditions that the imports constitute  a "substantial" cause of serious in jury, or threat thereof, to a WT/REG198/4 
Page 20 
 
 
  domestic industry of the importing Party, it may ap ply a bilateral safeguard measure to the minimum 
extent necessary to prevent or remedy serious inju ry and to facilitate adjustment (Article 53.1).19 
51. Bilateral safeguards may take the form of (a) suspension of  the further reduction of customs 
duty on the originating good;  or (b) increased cu stoms duty to the lesser of the applied MFN duty 
when the safeguard is taken and on the day immediat ely preceding the date of entry into force of the 
Agreement (Article 53.2).  Safegua rd measures cannot be applied to  imports within the tariff-rate 
quota quantities granted under Annex 1 of th e Agreement (Articles 53.3 and 53.4). 
52. Bilateral safeguards cannot be imposed for more than three years (compared to four years in 
the WTO Agreement on Safeguards), but can be extended up to a maximum period of four years in 
very exceptional circumstances subject to prior consultations.20 (Article 53.5).  The measure must not 
be applied to goods which have already been subject  to a bilateral safeguard measure, for a period of 
time equal to the duration of the previous measu re or one year (compared to two years in the 
WTO Agreement on Safeguards), whiche ver is longer (Article 53.6). 
53. Although provisional measures may be taken in critical circumstances where delay would 
cause damage if the subsequent investigation did not determine that increased imports caused or 
threatened to cause serious injury to a domestic indus try, the customs duty imposed as a result of such 
measure shall be refunded within 60 days (Articles 54.1 and 54.4).21  The duration of provisional 
measures cannot exceed 200 days within the ove rall period of the safeguard (Article 54.3). 
54. An investigation shall, except in special circum stances, be completed within one year, and no 
more than 18 months from the da te of initiation (Article 55.4).22  Only if the investigation 
demonstrates the existence of a causal link betw een increased imports of the originating good and 
serious injury or threat thereof can a bilateral safeguard measure be app lied (Article 55.10).  The 
relevant factors for the investigation include the rate  and amount of the increase in imports in absolute 
terms, the share of the domestic market taken by increased imports, and changes in the levels of sales, 
production, productivity, capacity utilization, profits and losses, employment, and prices 
(Article 55.9).23 
55. If necessary, the Parties shall review the bilateral safeguard provisions ten years after the 
entry into force of the Agreement (April 2015) (Article 53.13). 
56. The Parties can take any measure for balan ce-of-payments purposes in accordance with the 
conditions established under Article XII of the GA TT 1994, and the Understanding on the Balance-of 
-Payments Provisions of GATT 1994 (Article 171.1). 
 
 
  
                                                     
 
19 Under Article 56, the Agreement follows the defin itions of "domestic industry" and "serious injury" 
as in Article 4 of the WTO Agreement on Safeguards.  However, there is no definition of "threat of serious 
injury" in the Agreement.  Further, the Agreement does not define the word "substantial". 
20 Under the WTO Agreement on Safeguards, the maximum period of application of (global) safeguard 
measures is eight years (Article 7.3). 
21 Article 6 of the WTO Agreement on Safeguards stat es that the duties shall be refunded "promptly". 
22 There is no time period for the investig ation in the WTO Agreement on Safeguards. 
23 Article 4.2.(a) of the WTO Agreement on Safeguards also includes the rate and amount of the 
increase in imports of the product concerned in absolute and "relative" terms as factors in the investigation, 
whereas, in the Agreement, only the word "absolute" is me ntioned.  Further, "price" is not a factor in Article 
4.2.(a) of the WTO Agreement on Safeguards.  WT/REG198/4 
 Page 21 
 
 
  Table  II.4:  Synopsis of bilateral safeguards  
Requirements Specific Conditions under the Agreement 
Trigger Rise in imports 9 
Criteria Cause of serious injury or threat 
thereof "Substantial" cause of serious  injury, or threat thereof 
Measures allowed  Suspension of further duty reduction 9  
(Article 53.2. (a)) 
 Increase in duty rate Up to a maximum limit corre sponding to the MFN rate 
applicable to the same pr oduct at the time when the 
bilateral safeguard measure is taken;  and on the day 
immediately preceding the date of entry into force of the 
Agreement (Article 53.2.(b))  
Timing Maximum duration including 
provisional measures 3 years;  in “very exceptional circumstances” up to a 
maximum of 4 years 
(Articles 53.5 and 54.3) 
Conditions or limitations Information of initiation of an 
investigation through a written public 
notice  9 
(Articles 53.7 and 55.5) 
Detailed criteria are to be id entified in the written public 
notice.  
 Information of the intention to take 
measures through a written notice 9 
(Article 53.8) 
 Prior consultation 9 
(Article 53.9)  
 Prior investigation  9 
(Article 55.2) 
 Provisional bilateral safeguard 
measures 9 
(Article 54) 
If the subsequent investigation does not determine that 
increased imports have cause d or threatened to cause 
serious injury to a domestic industry, the customs duty 
imposed as a result of such measure shall be refunded 
within 60 days  
 Re-imposition of safeguard measures 
on the same good Shall not be applied for a period of time equal to the 
duration of the previous measure or 1 year, whichever is 
longer 
 Progressive liberalization 9 
(Article 53.5) 
For measures exceeding 3 years 
 Compensation 9 
(Articles 53.10 and 53.11) 
 Possibility of retaliation 9 
(Article 53.11)  
 
(iii) Special safeguards 
57. The Agreement contains no provisions on special safeguards. 
(c) Anti-dumping and countervailing measures 
58. There are no anti-dumping and countervailing provisions per se  in the Agreement.  However, 
Article 11.(b) implies that anti-dumping can be applie d pursuant to the Parties' domestic laws and to 
the provisions of Article VI of the GATT 1994, th e WTO Agreement on Implementation of Article VI 
of the GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures. WT/REG198/4 
Page 22 
 
 
  (d) Subsidies 
59. The Agreement contains no specific provision on subsidies. 
(e) Customs-related procedures 
60. The Parties affirm the important role of customs authorities and procedures for trade 
facilitation.  Article 50 aims for customs cooperation between the Parties to achieve conformity with 
relevant international standard s and recommended practices such as those under the auspices of the 
Customs Cooperation Council. 
C. TRADE IN SERVICES AND INVESTMENT  
1. Scope and definitions 
61. Trade in services is mainly governed by th e Chapter on cross-border trade in services 
(Chapter 8).  The definition of "cross-border trade in services" is the supply of a service (Article 
106.(a)): from the Area of one Party into that of the othe r;  in the Area of one Party by a person of that 
Party to a person of the other Party; or by a national of a Party in the Area of the other Party. 
62. The supply of a service by an investor of one of the Parties (commercial presence) is not 
regarded as "cross-border trade in services", but c overed by Chapter 7 on investment.  Further, 
Chapter 8 does not apply to: financial services, whic h are separately covered in Chapter 9;  cabotage 
in maritime transport services including navigation in  inland waters;  measures affecting air traffic 
rights or measures affecting services directly related to the exercise of air traffic rights other than 
measures affecting computer reservation systems, aircraft repair and maintenance, and sales and 
marketing of air transport services;  procurement by a Party or a state enterprise;  subsidies provided 
by a Party or a state enterprise thereof, includi ng grants, government-supported loans, guarantees and 
insurance;  measures pursuant to immigration laws and regulations;  services supplied in the exercise 
of government authority;  and measures of a Party with respect to a national of the other Party seeking access to its employment market, or employed  on a permanent basis in that Party. 
63. Chapter 7 on investment does not take precedence in the case of inconsistency with any other 
Chapter;  the other Chapter prevails to the extent of the inconsistency (Article 69).  Chapter 7 does not 
apply to measures adopted or maintained by a Party to the extent that they are covered by Chapter 9 
on financial services (Article 57.3).   It also establishes a mechanism fo r the settlement of investment 
disputes without prejudice to the rights and obligations of the Parties under Chapter 15 on dispute 
settlement (Article 75).  The tribunal may award m onetary damages and any applicable interest or 
restitution of property if it finds in favour  of the complaining party (Article 92). 
64. Both Chapters 7 and 8 follow a "negative lis t" approach with all sectors and sub-sectors 
assumed to be open to competition from nationals of the other Party, both for national and 
most-favoured-nation (MFN) treatment, unless otherwi se specified.  Additionally, Chapters 7 and 8 
do not impose senior management and boards of dir ectors and performance requirements;  and local 
presence requirements, respectively, unless otherwise specified.  For the implementation and 
operation of Chapter 8, a Sub-Committee on Cro ss-Border Trade in Services is established 
(Article 103). 
2. Denial of benefits 
65. Under Articles 70 and 105, a Party may deny the bene fits of Chapters 7 or 8 to an investor or 
a service supplier from the other Party, respectivel y if that person is an enterprise "owned" or 
"controlled" by investors/persons of a non-Party, an d the denying Party does not maintain diplomatic  WT/REG198/4 
 Page 23 
 
 
  relations with the non-Party or adopts or mainta ins measures with respect to the non-Party that 
prohibit transactions with the enterprise or that would be violated or circumvented if the benefits of 
the either of the relevant Chapters were accorded  to the enterprise.  Further, subject to prior 
notification and consultation, a Party may deny the be nefits of Chapter 7 or 8 to an investor or a 
service supplier of the other Party if that investor /person is an enterprise owned or controlled by 
persons of a non-Party, and has no substantial bus iness activities in the other Party.  "Owned" and 
"controlled" are defined in Chapter 8, but not in Chapter 7.  
3. General provisions on trade in services and investment 
(a) Market access 
66. The Chapter on cross-border trade in services does not contain market access provisions along 
the lines of Article XVI of the GATS. 
(b) National treatment and MFN 
67. Articles 98 and 99 (Chapter 8) on national and MFN treatment require respectively that each 
Party accord to services and service suppliers of the other Party treatment no less favourable than that 
it accords, in like circumstances, to its own servi ces and service suppliers or to services and service 
suppliers of non-Parties.  Further, each Party sh all accord to services and services suppliers of the 
other Party the better of the treatment required by Articles 98 and 99. 
68. Chapter 7 on investment requires each Party to accord national and MFN treatment (Articles 
58 and 59 respectively), in like circumstances, to invest ors of the other Party and to their investments, 
with respect to establishment, acquisition, expansi on, management, conduct, op eration, maintenance, 
use, enjoyment and sale or other disposition of invest ments.  Each Party shall accord to investors of 
the other Party and to their investments the better of the treatment required by Articles 58 and 59.  
National and MFN treatment shall be also applied, in like circumstances, for access to the courts of 
justice and administrative tribunals and agencies in all levels of jurisdiction (Note 3 under Article 59). 
69. The Parties also reserve the right to be ex empted from the MFN principle for treatment 
accorded under international agreements in force prior to 1 January 1994;  and international 
agreements involving aviation, fisheries, or mar itime matters including salvage, in force or signed 
after 1 January 1994.  This exemption does not exist with regard to cross-border trade in services.  
Any current or future foreign aid programmes prom oting economic development are also not subject 
to MFN treatment (Annex 9). 
(c) Local presence and performance requirements 
70. The Parties shall not require each others' ser vice suppliers to establish or maintain a 
representative office or any form of enterprise, or to be resident, in their Area as a condition for the 
cross-border supply of a service (Article 100). 
71. Article 65 prohibits performance requirements.  Accordingly, the Parties undertake not to 
impose or enforce any of the following requirements, or any commitment or undertaking, in 
connection with the establishment, acquisition, e xpansion, management, conduct or operation of an 
investment by an investor of a Party or of a non-Party in its Area: 
(a) to export a given level or percentage of goods or services; 
(b) to achieve a given level or pe rcentage of domestic content; WT/REG198/4 
Page 24 
 
 
  (c) to purchase, use or accord a preference to goods produced or services provided in its 
Area, or from persons in its Area; 
(d) to relate in any way the volume or value of imports to exports or to the amount of 
foreign exchange inflows associ ated with the investment; 
(e) to restrict sales of goods or services produced or provided in its Area by relating them 
to the volume or value of its expor ts or foreign exchange earnings; 
(f) to transfer technology, a production pro cess or other proprietary knowledge to a 
person in its Area; or  
(g) to supply exclusively its goods and services to a specific region or world market. 
72. The Parties reserve the right to condition receipt of advantages on compliance with 
requirements to locate production, provide a service, train or employ workers, construct or expand 
particular facilities, or carry out research and development in their Area (Article 65.3). 
73. Article 64 prohibits restrictions concerning the nationality of senior management.  However, a 
Party may require that a majority of the board of directors, or any committee of directors, of an enterprise of that Party owned by an investor of the other Party, be of a particular nationality, or 
resident of the Party, provided that the require ment does not materially impair the ability of the 
investor to exercise control over its investment. 
(d) Movement of natural persons 
74. Chapter 10 contains provisions on the movement of natural persons, particularly, the entry 
and temporary stay of nationals for business purposes on a reciprocal basis (Articles 113.1 and 114.1).  
It does not apply to measures affecting nationals seeking access to the employment market of the 
Parties or regarding nationality or citizenship, or  residence or employment on a permanent basis 
(Article 114.2) but permits the Parti es to take measures to protect the integrity of their borders (Article 
114.3). 
75. The Parties grant entry and temporary stay to each others' nationals in accordance with 
Chapter 10 and its related Annex 10.  The Parties cannot impose or maintain quantitative restrictions 
on:  short-term business visitors;  intra-corporate tran sferees;  investors;  and nationals of a Party who 
engage in professional business activities on the basis of a personal contract with public or private 
organizations in the other Party.  The Party, howe ver, maintains the right to ask for a visa from a 
national of the other Party requesting entry and tem porary stay (Sections 1.6, 2.4, 3.3 and 4.4).  
Further, a national of a Party belonging to one of the four categories must comply with immigration 
laws and regulations of the other Part y (Sections 1.2, 2.1, 3.1 and 4.1). 
76. The period that persons in these four categories may stay in the other Party is summarized in 
Table II.5 below. 
Table II.5 
 Japan Mexico 
 Initial period of entry 
and stay Extension Initial period of entry 
and stay Extension 
Short-term business visitors 90 days – in principle, 
granted as of arrival  Yes – but no indication of 
extension criteria. 30 days Yes – but no 
indication of 
extension criteria  WT/REG198/4 
 Page 25 
 
 
   Japan Mexico 
 Initial period of entry 
and stay Extension Initial period of entry 
and stay Extension 
Intra-corporate transferees One or th ree years Yes – but no indication of 
criteria. One year Yes – four times 
each and for equal periods of time 
Investors One or three years Yes – but no indication of 
criteria. One year Yes – four times 
each and for equal periods of 
time 
Nationals of a Party engaging 
in professional business activities on the basis of a personal contract with public 
or private organizations in the 
other Party One or three years Yes – but no indication of 
criteria. One year Yes – four times 
each and for equal periods of time 
Source : Appendix 1 of Annex 10, the Agreement. 
(i) Short-term business visitors 
77. A short-term business visitor is understood to m ean a person with business contacts including 
negotiations for the sale of goods or services, or  other similar activities including preparing for 
establishment.  In addition, a short-term business visitor cannot receive remuneration from the other 
Party or engage in direct sales to the genera l public or supply services himself (Section 1.1 of 
Annex 10).  The documents to be presented include:  proof of nationality;  evidence that the national 
will be engaged in the business activities;  a nd evidence indicating no aim to seek domestic 
employment (Section 1.2 of Annex 10).24  The Parties cannot require prior approval procedures or 
other procedures of similar effect.  Currently, ne ither Party is requesting such measures, nor is 
planning the introduction of such measures. 
(ii) Intra-corporate transferees 
78. An intra-corporate transferee is understood to mean a national of a Party: who has been 
employed by an enterprise that supplies services or that invests in the other Party (for a period not less 
than one year immediately preceding the date of ap plication for the entry and temporary stay in the 
other Party), and who is being transferred to its bran ch or representative office in the other Party, or to 
an enterprise constituted or organized in the other Pa rty but owned or controlled by, or affiliated with, 
it.25  The activities of an intra-corporate transferee ar e: directing a branch or a representative office as 
its head, an enterprise as its board member or auditor,  and one or more departments of an enterprise;  
requiring technology or knowledge at an advanced leve l pertinent to physical sciences, engineering or 
other natural sciences or to jurisprudence, ec onomics, business management, accounting or other 
human sciences. 
(iii) Investors 
79. An investor is a national of a Party who is engaged in one of the following activities: 
(a) investing in and managing a business in the other Party; 
                                                      
24 Evidence can indicate that the source of remuneration for the proposed business activity is outside 
the Party granting entry and temporary stay;  and the national's principal place of business, and the actual place 
of accrual of profits, predominantly, remain outside the Party granting entry and temporary stay (Section 1.3 of 
Annex 10). 
25 An enterprise is "affiliated" with another enterp rise when the latter can significantly affect the 
decision making of the former on finance and business policy (Note of Section 2 in Annex 10). WT/REG198/4 
Page 26 
 
 
  (b) managing a business in the other Party on beha lf of a person other than that of the 
other Party who has invested in the business; or 
(c) conducting a business in the other Party in whic h a person other than that of the other 
Party has invested. 
(iv) Nationals of a Party engaging in professional  business activities on the basis of a personal 
contract with public or private organizations in the other Party 
80. A national of a Party engaging in professional business activities based on a personal contract 
with public or private organizations in the othe r Party is limited to professional business activities: 
requiring technology or knowledge at an advanced leve l pertinent to physical sciences, engineering or 
other natural sciences26;  or to human science including jurisprudence, economics, business 
management and accounting, or requiring cu ltural ideas and sensitivities of a non-Party.27  Mexico 
listed 42 such  professions in Appendix 2 of Annex 10.  Degrees from universities or other similar 
educational institutions are re quired for the listed professions. 
81. The fee for processing applications by nationals of the other Party shall take into account the 
administrative costs involved (Article 115.2).  Transparency provisions require the Parties to publish 
an explanation of requirements for entry and temporar y stay, no later than one year after the date of 
entry into force of the Agreement.28  From the entry into force of the Agreement, the Parties 
endeavour to collect, maintain and make available to each other, data on the granting of entry and 
temporary stay to each others' nationals (Article 116.2).  Table II.6 below shows the number of such 
grants by Japan in 2002-2006. 
Table II.6 
A: Movement of Mexican Natural Persons to Japan 
Categories 
Year Intra-corporate 
transferees Service sellers/ persons responsible for 
setting up commercial presence Other categories of relevance in the 
context of the Agreement Total 
2002 4 3,053 0 5,059 
2003 12 2,736 1 4,752 
2004 4 3,561 1 5,570 
2005 18 3,557 1 5,581 
2006 8 3,660  0 2,014 
Source: WTO Secretariat, based on data provided by Japan. 
B: Movement of Japanese Natural Persons to Mexico 
Categories 
Year Intra-corporate 
transferees Service sellers/ persons responsible for 
setting up commercial presence Other categories of relevance in the 
context of the Agreement Total 
2002 .. .. .. 8,733 
2003 .. .. .. 8,148 
                                                      
26 For Japan, activities under the status of "engineer" as indicated in Section 4.1.(a).(i) of Annex 10 
(which may include other activities provided that the activities fulfil these requirements);  for Mexico, 
professions listed in Appendix 2 of Annex 10.  
27 For Japan, activities under the status of "specialist in humanities/international services" as  indicated 
in Section 4.1.(b).(i) of Annex 10 (which may include  other activities provided that the activities fulfil these 
requirements), for Mexico, professions listed in Appendix 2 of Annex 10.  
28 Available for Mexico at http://www.inami.gob.mx.  As at April 2008, Japan's explanation of such 
requirement is under consideration by Mexico.  The relevant information is available at 
http://www.mofa.go.jp/j_info/visit/visa/index.html.  WT/REG198/4 
 Page 27 
 
 
  2004 .. .. .. 10,698 
2005 .. .. .. 12,563 
2006 .. .. .. 14,975 
.. not available. 
Source: Data provided by the Mexican National Migration Institute. 
 
82. A Sub-Committee on Entry and Tempor ary Stay was established to, inter alia , enhance 
mutual understanding between the Parties on creden tials and other qualifications for entry and 
temporary stay (Article 117). 
83. Refusal to grant entry and temporary stay is not normally open to consultations under Article 
152 unless there is a pattern of practice and the na tionals concerned have exhausted the available 
domestic administrative remedies (Article 118.1).  A ccording to the Parties, subject to meeting both 
conditions, any dispute arising from Chapter 10 can  be dealt with under the dispute settlement 
mechanism established in Chapter 15. 
4. Non-conforming measures 
84. Reservations on cross-border trade in servi ces are specified for national treatment, MFN 
treatment, and local presence (Article 101);  and in the case of investment, for national treatment, 
MFN treatment, senior management and boards of  directors, and performance requirements 
(Article 66).  Annexes 6 and 7 contain existing an d future non-conforming measures respectively.  
The lists are based on domestic industry classification codes.  Both Parties maintain reservations on 
any future measures in new services,  broadcasting, en ergy, and social services.  Further, Annex 8 lists 
activities for which investment can be refused by Mexi co (Article 57.2).  These are:  petroleum, other 
hydrocarbons and basic petrochemicals;  electricity ;  nuclear power and treatment of radioactive 
minerals;  telegraph and radiotelegraph services;  postal services;  issuance of bills (currency) and 
minting of coinage;  and control, inspection and surveillance of maritime and inland ports and of 
airports and heliports. 
85. In addition, the Parties agreed to indicate any existing non-conforming measure maintained 
by a state or a prefecture within six months of the date of entry into force of the Agreement (Articles 
66.2 and 101.2).  Mexico notified Japan of reservati ons maintained by its states on cross-border trade 
in services and investment for 82 existing measures concerning, inter alia , education;  leisure, cultural 
recreation and sporting services;  professional, tec hnical and specialized services;  public services;  
trade;  transportation;  and water collection, pu rification and distribution (Annex 6).  There are no 
reservations by Japanese prefectures. 
(a) Japan 
86. Japan has listed existing limitations on nationa l treatment in Annex 6, in the form of 
nationality or prior notification requirements.  U nder the prior notification requirement, a Mexican 
investor or a Japanese enterprise owned or contro lled by the Mexican investor must notify the 
intended investment to the Ministers of Finance and the Industry concerned.  If the Ministers consider 
that the investment could adversely affect national security, public order or public safety, or sound 
management of the national economy, they may reco mmend or order changes to the investment plan 
or cancel it (Annex 6.6).  Such measures can be taken only by Japan, but not by Mexico.  Japan has 
taken five MFN reservations which apply to some transport services.  Japan requires local presence 
for the professional services listed in Annex 6.  Table II.7 contains the existing limitations. WT/REG198/4 
Page 28 
 
 
  Table II.7 
Non conforming measures listed by Japan in Annex 6 
Sector Obligations  Mode Description 
Automobile maintenance business LP CBTS Establishmen t requirement and approval by authority where the 
workplace is located. 
Business services: private employment and worker 
dispatching LP CBTS Establishment/permissi on/notification requirements. 
Construction LP CBTS Establishment/permission requirement.  Registration requirement for 
demolition work business. 
Heat supply NT I Prior notification requirement. 
Telecommunications NT/SMBD I If the aggregate voting rights of: (a) a non-Japanese natural person; 
(b) a foreign government or its representative; or (c) a foreign 
juridical person or association reach or exceed one-third of the total, 
the Nippon Telegraph and Telephone  Corporation (NTT) may not 
register shareholders.  Nationality re striction for director and auditor 
of NTT, NTT East Corporation,  and NTT West Corporation. 
Telecommunication and internet 
based services including mobile telecommunication NT I Prior notification requirement. 
Drugs and medicines 
manufacturing – biological 
preparations NT I Prior notification requirement. 
Leather and leather products 
manufacturing  NT I Prior notification requirement. 
Matters related to the nationality of 
a ship NT/SMBD I Japanese nationality to be grante d to a ship whose owner is a Japanese 
natural person or a legal person esta blished under Japanese law with 
all senior management and not less than two-thirds of executives 
being Japanese nationals. 
Measuring services – commodity inspection and surveyor certification  LP CBTS Establishment/designation/registration requirements. 
Medical, health care and welfare – 
miscellaneous social insurance, social welfare and care services LP CBTS Establishment/approval requirements. 
Mining NT/LP I/CBTS Nationality requirement. 
Oil industry NT I Prior notification requirement  – exception for organic chemicals, such 
as ethylene, ethylene gl ycol and polycarbonates. 
Primary industry related to 
agriculture, forestry and fisheries (except those covered by Annex 7) NT I Prior notification requirement. 
Professional services – lawyer's 
offices LP  CBTS Qualification requirement under "Bengoshi". Establishment 
requirement for an office within the district of the local bar to which 
the person belongs.  Establishment requirement for an enterprise under "Bengoshi – Hojin". 
Professional services – lawyer's offices – foreign legal consultant 
services LP CBTS Qualification requirement  under "Gaikokuho-Jimu-Bengoshi".  
Establishment requirement for an office within the district of the local 
bar to which the person belongs.  Mi nimum required stay in Japan for 
180 days per year. 
Professional services – patent attorneys' offices LP CBTS Establishment requirement for an enterprise under "Tokkyo-Gyoumu-
Hojin". 
Professional services – notary NT/LP CBTS Nationality re quirement.  Establishment requirement in the place 
designated by the Minister of Justice.  
Professional services – judicial 
scrivener  LP CBTS Qualification requirement unde r "Shiho-Shoshi".  Establishment 
requirement for an office within th e district of judicial scrivener 
association to which the person belongs.  Requirement for an 
establishment of an enterprise under "Shiho-Shoshi-Hojin". 
Professional services – certified public accountants' offices LP CBTS Establishment requirement for an audit corporation under "Kansa-
Hojin". 
Professional services – auditors' offices LP CBTS Qualification requirement under "Zeirishi".  Establishment 
requirement for an office within th e district of certified public tax 
accountant association to which the person belongs to. Establishment 
requirement for an enterprise under "Zeirishi-Hojin". 
Professional services – architectural 
design and certified real estate appraisers services, etc. LP CBTS Qualification requirement fo r architects/building engineers under 
"Kenchikushi".  Establishment requirement. 
Professional services – certified 
social insurance and labour 
consultants' offices LP CBTS Qualification requirement  under "Shakai-Hoken-Romushi". 
Establishment requirement for an enterprise under "Shakai-Hoken-
Romushi-Hojin". 
Professional services – administrative scriveners' offices LP CBTS Qualification requirement under "Gyousei-Shoshi".  Establishment 
requirement.  WT/REG198/4 
 Page 29 
 
 
  Sector Obligations  Mode Description 
Professional services – land and 
house surveyor services LP CBTS Qualification requirement  under "Tochi-Kaoku-Chosashi".  
Establishment requirement.  Esta blishment requirement for an 
enterprise under "Tochi-Kaoku-Chosashi-Hojin". 
Real estate services LP CBTS Establishment requirement.  License from/ permission 
from/registration by the authorities. 
Real estate appraisal services LP CBTS Establishment/registration requirements. 
Seafarers NT CBTS Nationality requirement ex cept for the seafarers referred to in the 
relevant official notification. 
Security guard services NT/LP I/CBTS Prior no tification/establishment/approval requirements. 
Services related to occupational 
safety and health LP CBTS Residency, establishment and registration with the authorities 
required. 
Survey services LP CBTS Establis hment requirement.  Register requirement in the authorities. 
Air transport NT/MFN/ 
SMBD I Prior notification/nationality requirements.   
Aircraft services, except air 
transport NT/SMBD I/CBTS Prior notification/nationality requirements.  
Air transport – registration of 
aircraft in the national register NT/SMBD I Nationality requirement. 
Customs brokerage LP CBTS Establishment/permission requirements. 
Freight forwarding business 
(excluding freight forwarding business using air transportation) NT/MFN/S
MBD/LP I/CBTS Registration/permission/appr oval/establishment requirements. 
Freight forwarding business (only 
freight forwarding business using 
air transportation) NT/MFN/ 
SMBD I Nationality/registration/perm ission/approval requirements. 
Railway transport NT I Prior notification requi rement.  The manufacture of vehicles, parts 
and components for railway transport is not included. 
Road passenger transport NT I Prior notification requirement.  The manufacture of vehicles, parts 
and components is not included in omnibus industry. 
Road transport – passenger and freight transport LP CBTS Establishment requirement and permission for passenger motor 
transport or trucking businesses. 
Services incidental to transport - pilots NT/LP CBTS Nationality/association requirements. 
Water transport: oceangoing 
transport NT/MFN CBTS Restriction/prohibition of Mexican oceangoing ship operaters from, 
inter alia , entering Japanese ports, if  Japanese oceangoing ship 
operators are prejudiced by Mexico. 
Water transport: coastal transport, inland water transport, coastal ship leasing  NT I Prior notification requirement. 
Water transport NT/MFN I/CBTS Ships without Japane se flag are prohibited from entering Japanese 
ports that are not open to foreign commerce and from performing cabotage. 
Vocational skills test LP CBTS Establishment/designation requirements. 
Water supply and waterworks NT I Prior notification requirement. 
Wholesale and retail trade - livestock LP CBTS Residency/licence requirements. 
Note: CBTS: Cross-border trade in services;  I: Investment;  LP: Local presence requirements;  MFN: Restriction to MFN treatmen t;  
NT:  National treatment restriction;  SMBD: Senior  management and boards of directors restriction. 
 
Source : Annex 6,  the Economic Partnership Agreement between Japan and Mexico. 
 
87. Japan has reserved the right to maintain existing,  or adopt new or more restrictive, measures 
as listed in Annex 7 and described in Table II.8.  The energy and fisheries sectors enjoy the full 
reservations of the five obligations. 
Table II.8 
Non conforming measures listed by Japan in Annex 7 
Sector Obligations  Mode Description 
All NT/SMBD I Possible prohibition or limitation on ownership and controlling 
interest by investors.  Any meas ure relating to the nationality of 
senior management or members of the board of directors. 
All NT/SMBD/ 
LP I/CBTS Any measure relating to future lib eralization in telegraph services;  
postal services and betting and gambling services;  manufacture of tobacco products;  issuing of and Ba nk of Japan notes;  and minting 
and sale of coinage in Japan. 
All NT I NT may not be accorded with respect to subsidie s for research and 
development. WT/REG198/4 
Page 30 
 
 
  Sector Obligations  Mode Description 
All (new services) NT/MFN/LP CBTS Any measure relati ng to new services other than those recognized at 
the entry into force of  the Agreement.  Any measure relating to the 
supply of services through any mode in which those services were not technically feasible at the en try into force of  the Agreement. 
Aerospace NT/SMBD/ 
PR/LP I/CBTS Any measure relating to investmen t/supply of services in the aircraft 
and space industry. 
Arms and explosives NT/SMBD/ 
PR/LP I/CBTS Any measure relating to investme nt/supply of services in the arms 
industry and explosives manufacturing. 
Energy NT/MFN/SM
BD/PR/LP I/CBTS Any measure relating to investme nt/supply of services in listed sub-
sectors of the energy industry. 
Fisheries NT/MFN/SM
BD/PR/LP I/CBTS Any measure relating to investmen t/supply of services in fisheries in 
territorial seas, internal waters , the exclusive economic zone and 
continental shelf of Japan. 
Information and communications NT/SMBD/ 
PR/LP I/CBTS Any measure relating to investment/supply of services in the 
broadcasting industry. 
Security guard services NT/LP CBTS Any measure rela ting to the supply of security guard services by 
non-nationals.  
Social services NT/SMBD/ 
PR/LP I/CBTS Any measure relating to public  law enforcement and correctional 
services and social services such as income security or insurance, 
social security or insurance, soci al welfare, public education, public 
training, health and child care. 
Note: CBTS: Cross-border trade in services;  I: Investment;  LP: Local presence requirements;  MFN: Restriction to MFN treatmen t;  
 NT: National treatment restriction;  SM BD: Senior management and boards of di rectors restriction;  PR: Performance 
 requirements. 
 
Source :  Annex 7, the Economic Partnership Agreement between Japan and Mexico. 
 
(b) Mexico 
88. Mexico has listed its existing limitations to na tional treatment in Annex 6, in the form of 
nationality requirements and/or owners hip interests.  It has taken six MFN reservations which apply to 
telecommunication, fishing and transportation ser vices.  Table II.9 contains these limitations. 
Table II.9 
Non conforming measures listed by Mexico in Annex 6 
Sector Obligations  Mode Description 
All NT I Limitation on property ri ghts over land and water for foreign 
nationals or foreign enterprises. 
All NT I Criteria for permitting inve stment: a) effects on employment and 
training of workers;  b) technologi cal contribution;  c) compliance 
with environmental provisions;  and d) contribution to the 
competitiveness of Mexican production. 
All NT I Permission by the National Commission on Foreign Investment 
(NCFI) required for investment above 49% by Japa nese investors 
in unrestricted sectors. 
All NT/SMBD I Maximum 10% of foreigners in a Mexican production 
cooperative.  Maximum 10% Japanese ownership in a Mexican production cooperative by investors.   No foreign nationals in 
general administrative functions or managerial activities. 
All NT I Nationality requirement for a micro-industry enterprise (run by up 
to 15 workers and whose annual sales do not exceed an amount determined by the Ministry of Ec onomy) and no foreign partners.   
Agriculture, lives tock, forestry, 
and lumber activities NT I Nationality requirement to own land for the purpose of these 
activities.  Maximum 49% partic ipation by foreign investors 
through shares. 
Telecommunications services and 
public networks (commercial agencies) NT/MFN/LP I/CBTS Nationality/permit/ establishment/approval requirement. 
Telecommunication services and 
public networks NT/MFN/LP I/CBTS Maximum 49% particip ation by investors.  Nationality 
requirement.   
Telephone services including 
mobile, and public telephone services, and telecommunication 
installation NT/MFN/LP I Maximum 49% participa tion by investors in telephone and 
telephone booth services and te lecommunications facilities.  
Permission by the NCFI require d for investment above 49% 
capital by Japanese investors in mobile phone services operators. 
Nationality requirement.  WT/REG198/4 
 Page 31 
 
 
  Sector Obligations  Mode Description 
Communications including 
telecommunications and postal 
services;  and transport NT I Restriction on investment by  foreign governments and foreign 
state enterprises or their invest ments in Mexican enterprises in 
communications, transportation and other general means of communication. 
Construction for petroleum and petroleum-derivative pipelines;  drilling of oil and gas wells NT I Prohibition on risk-sharing contracts.  If non-risk-sharing, 
Permission by the NCFI required for investment above 49% by 
Japanese investors. 
Education services – private schools NT I Permission by the NCFI requi red for investment above 49% by 
Japanese investors. 
Energy – retail trade in liquefied-gas fuels NT I Nationality requirement.  
Energy – retail trade in other 
articles and goods not elsewhere classified LP CBTS Only Mexican national by permission.  
Energy – retail trade in gasoline 
and diesel NT I Nationality requirement. 
Energy – supply of fuel and 
lubricants for aircraft, ships and railway equipment NT I Maximum 49% ownership by Japanese investors. 
Fishing NT/MFN/LP CBTS Nationality/permit requirement. 
Fishing – in ocean;  coastal 
waters;  and inland waters NT/MFN I Maximum 49% ownership by fo reign investors for coastal fishing, 
fresh water fishing and fishing in the Exclusive Economic Zone.  Permission by the NCFI required for investment above 49% by 
Japanese investors for high seas fishing. 
Manufacture of goods – explosives and fireworks;  firearms and cartridges NT I Maximum 49% ownership by Japanese investors.  
Manufacture of goods PR I Differentiation between  “direct and indirect  exporters” based on 
annual total sale. 
Manufacture of goods PR I Criteria for authorized exporters. 
Printing, editing and associated industries NT I Maximum 49% ownership by Japanese investors.  
Professional, technical and 
specialized services: medical 
doctors – medical, dental and 
veterinary services provided by the private sector NT CBTS Nationality/licence requirements for in-house medical services in 
Mexican enterprises. 
Professional, technical and specialized services NT/LP CBTS Local presence/address required. 
Professional, technical and 
specialized services – commercial notary public NT/LP I/CBTS Nationality requirement (by birth) with license.  Establishment 
requirement in the area where the practice authorized.  
Professional, technical and specialized services – services of 
customs and representative 
agencies NT I/CBTS Nationality requirement (by birth) for a customs broker. 
Religious services – services of 
religious organizations SMBD/LP I/CBTS Nationality requirement for representatives of religious 
associations.  Establishment requirement for register. 
Retail trade – sale of non-food products in specialized establishments NT I Maximum 49% ownership by Japanese investors. 
Services to agriculture NT/LP CBS  Concession by authorities require d for spraying pesticides based 
on nationality requirement. 
Air transportation: manufacture, assembly and repair of aircraft LP CBS Permit requirement. 
Air transportation: scheduled air 
transport services on domestically registered aircraft,  non-schedules 
air transport (air taxis) NT/SMBD I Maximum 25% of voting interests in an enterprise by investors. 
Nationality requirement for the ch airman, the board of directors 
and managing officers. 
Air transportation: aeronautical navigation services, airport and heliport management services NT I Permission by the NCFI requi red for investment above 49% by 
Japanese investors. 
Specialty air services NT/LP/ 
SMBD I/CBTS Maximum 25% of voting interests in an enterprise by investors. 
Nationality requirement for the ch airman, the board of directors 
and managing officers.  Permit re quirement based on address in 
Mexico. 
Land transportation: construction materials transport, moving, other 
specialized freight transport, 
general freight transport, long-distance passenger bus and coach NT/LP I/CBTS Prohibition of ownership except inter-city bus services, or 
domestic cargo services between points in Mexico other than 
packaging and messenger services.  Permit requirement based on 
nationality requirement.  WT/REG198/4 
Page 32 
 
 
  Sector Obligations  Mode Description 
transport, tourist transport 
services 
Land transportation: local bus;  
school bus;  and taxi and other 
collective transportation  NT I/CBTS Nationality requirement.   
Establishment or operation of bus 
or truck station or terminal NT/LP CBTS Permit based on nationality requirement. 
Road and bridge management 
services and auxiliary services NT/LP CBTS Concession by author ities required based on nationality 
requirement. 
Construct and operate marine or river works or roads for land transportation NT/LP CBTS Concession by author ities required based on nationality 
requirement. 
Construct and operate pipelines carrying goods other than energy 
or basic petrochemicals NT/LP CBTS Concession  by author ities required based on nationality 
requirement. 
Construct, operate and exploit railroads NT/LP I Permission by the NCFI requi red for investment above 49% by 
Japanese investors. Authority  concession/permit based on 
nationality requirement. 
Railway crew  NT CBTS Nationality requirement. 
Establish and operate a shipyard NT/LP CBTS Con cession by authorities requi red based on nationality 
requirement. 
Sea and coastal transport;  coastal transport;  transoceanic and coastal towing;  inland water 
transport services NT/MFN I/CBTS Maximum 49% ownership by  Japanese investors for commercial 
exploitation of vessels for in land and coastal navigation.  
Permission by the NCFI required for investment above 49% by 
Japanese investors for high-seas navigation services.  Nationality 
requirement for the operation a nd exploitation of dredges and 
maritime devices for the construc tion, preservation and operation 
of ports. 
Water transportation NT/LP I/CBTS Permission by th e NCFI required for investment above 49% by 
Japanese investors. Concession/ permit by authorities required 
based on nationality requirement. 
Management of ports NT I Maximum 49% ownership by Japane se investors.   
Piloting port services NT I Maximum 49% pa rticipation by Japanese investors.   
Note: CBTS: Cross-border trade in services;  I: Investment;  LP: Local presence requirements;  MFN: Restriction to MFN treatmen t;  
NT: National treatment restriction;  SM BD: Senior management and boards of di rectors restriction;  PR: Performance 
requirements. 
 
Source : Annex 6, the Economic Partnership Agreement between Japan and Mexico. 
 
89. Mexico reserves the right to maintain existing, or adopt new or more restrictive, measures as 
listed in the Annex 7 and described in Tabl e II.10.  Among others, communication and air 
transportation services remain protected. 
Table II.10 
Non conforming measures listed by Mexico in Annex 7 
Sector Obligations Mode Description 
All NT I/CBTS Any measure restricting th e acquisition, sale or other disposition 
of bonds, treasury bills or any othe r kind of debt security issued by 
the federal, state or local government. 
All NT I Any measure relating to subsidies or grants provided by the 
federal or state governments or by a state enterprise, including 
government-supported loans, guarantees and insurance. 
All (new services) NT/MFN/LP CBTS Any measure rela ting to new services other than those recognized 
at the entry into force of the Ag reement.  Any measure relating to 
the supply of services in any mode of supply in which those services were not technically feasib le at the entry in to force of the 
Agreement. 
Communications – entertainment services (broadcasting) NT/SMBD/ 
PR/LP I/CBTS Any measure relating to investment/supply of services in radio or 
television programming for broadcas ting or cable distribution in 
Mexico, and the advertising thr ough open radio and television or 
restricted television. 
Communications – postal services and telecommunications NT CBTS Nationality requirement for pos tal, telegraph a nd radiotelegraphy 
services. 
Communications - telecommunications NT/LP I/CBTS Any measure relating to invest ment/supply of services in air traffic 
control; aeronautical meteorology; aeronautical telecommunications; and other telecommunications services 
relating to air navigation services.  WT/REG198/4 
 Page 33 
 
 
  Sector Obligations Mode Description 
Communications – 
telecommunications services and networks NT/MFN/LP I/CBTS Any measure relating to i nvestment/supply of services in maritime 
telecommunications services. 
Energy NT/MFN/LP CBTS Any measure relating to services associated with energy and basic 
petrochemical goods. 
Entertainment services NT/MFN/ 
SMBD/LP I/CBTS Any measure relating to investment/supply of services in 
recreational services incl uding gambling and betting. 
Minority affairs NT/LP CBTS Any measure accord ing rights or preferences to socially or 
economically disadvantaged groups. 
Professional, technical and specialized services – services of lawyer's offices including foreign legal consultancy NT/MFN/ 
SMBD/LP I/CBTS Any measure relating to investment/supply of services in legal 
services and foreign legal cons ultancy services by Japanese 
nationals. 
Social services NT/SMBD/ 
LP I/CBTS Any measure relating to the s upply of public law enforcement;  
correctional services;  income se curity or insurance;  social 
security or insurance;  social we lfare;  public education;  public 
training;  health;  and child care to  the extent they are established 
or maintained for a public purpose. 
Transportation – air transportation NT/LP CBTS Any measur e relating to management, operation, exploitation and 
construction of airports and civil airfields other than airports. 
Transportation – specialized 
personnel NT/MFN/LP CBTS Only Mexican nationals by birth for: captains;  pilots;  ship 
masters;  machinists;  mechanics and crew members manning vessels or aircraft under Mexican fl ag,  and harbour pilots, harbour 
masters and airport administrators. 
Note: CBTS: Cross-border trade in services;  I: Investment;  LP: Local presence requirements;  MFN: Restriction to MFN treatmen t;  
 NT: National treatment restriction;  SM BD: Senior management and boards of di rectors restriction;  PR: Performance 
 requirements. 
 
Source : Annex 7, the Economic Partnership Agreement between Japan and Mexico. 
 
5. Regulatory provisions on trade in services 
(a) Domestic regulation 
90. Article 104 on licensing and certification is based on Article VI.4 of the GATS.  With a view 
to ensuring that measures relating to  the licensing, certification, or technical standards of each others' 
services suppliers do not constitute an unnecessary barri er to cross-border trade in services, each Party 
shall endeavour to ensure that such measures are: based on objective and transparent criteria, such as 
competence and the ability to supp ly the services;  not more burdens ome than necessary to ensure the 
quality of the services;  and do not constitute a disgui sed restriction on the cross-border supply of the 
services (Article 104.1). 
(b) Recognition 
91. Where a Party recognizes, unilaterally or by agreement, education, experience, licences or 
certificates obtained in a non-Party, it is not bou nd to accord this treatment to the other Party 
(Article 104.2). 
6. Liberalization commitments in selected services sectors 
(a) Financial services 
92. Chapter 9 applies to measures adopted or mainta ined by a Party affecting: cross-border trade 
in financial services;  financial in stitutions and investors of the other Party;  and investment by such 
investors, in financial institutions in the Party (Article 107).  The provisions of Chapters 7 and 8 do 
not apply to this sector (Article 111) and the Chapter does not have provisions on market access, 
national treatment and MFN.  Further, the dispute settlement provisions in Chapter 15 do not apply to 
this Chapter (Article 109). WT/REG198/4 
Page 34 
 
 
  93. Activities or services forming part of a public retirement plan or statutory system of social 
security may be provided exclusively by the Par ties including their public entities (Article 107.3).  
The Parties also may adopt or maintain measures for prudential reasons, including for the protection 
of investors, depositors, policy holde rs, and claimants or persons to whom a fiduciary duty is owed by 
a financial institution or a cross-border financial ser vice supplier, or to ensure the soundness, integrity 
and stability of their financial system (Article 110). 
94. The Parties reaffirm their commitments under the GATS including the Understanding on 
Commitments in Financial Services as well as the OECD Code of Liberalization of Capital Movements and other international agreements  to which both are parties (Article 108). 
(b) Maritime transport services 
95. The Parties have taken additional liberalizati on commitments in the Agreement on maritime 
transport services.  For example, under the Agreem ent Japan does not have any national treatment 
reservations on maintenance and repair of vessels services which is a sector not included in its GATS 
schedules.  In the case of oceangoing transport, as under its GATS schedules, it restricts or prohibits cargo from entering Japanese ports or loading and unloading in Japan in  cases where Japanese 
oceangoing ship operators are prejudiced by Mexico .  Under maritime transport services in its GATS 
schedules, Japan has liberalized pushing and towing services (modes 2 and 3), maritime agency services (modes 1, 2, and 3) and salvaging and refl oating, watering, fuelling and garbage collection 
services (modes 1, 2, and 3).  Under the Agre ement, these services are also liberalized. 
96. Mexico has taken additional liberalizing commitme nts in the Agreement in maritime transport 
services.  In contrast to its GATS commitments wh ere maritime transport is uncommitted, the sector 
is liberalized under the Agreement subject to certa in national treatment or national treatment/MFN 
principle reservations with regard to several mar itime transport services.  For example, only Mexican 
nationals and Mexican enterprises can establish and opera te shipyards.  This is  also the case for the 
operation and exploita tion of dredges and maritime devices for the construction, preservation and 
operation of ports.  In addition, Mexico has sche duled reservations under the Agreement that in the 
case of constructing and operating, or operating mar itime and inland port terminals, including docks, 
cranes and related facilities, only Mexican nati onals and Mexican enterprises are allowed. 
D. G
ENERAL PROVISIONS OF THE AGREEMENT  
1. Exceptions 
97. General exceptions for goods and services ar e maintained by incorporating into the 
Agreement mutatis mutandis  Article XX of the GATT 1994 for g oods and Article XIV of the GATS 
for services-related issues.29  Article 169 sets general exceptions re lating to security concerns that are 
similar to those in Article XXI of the GATT 1994.  The Chapter also includes exceptions for taxation.  
However, Article 3 (national tr eatment), Article 6 (export duties)  and Article 61 (expropriation and 
compensation) of the Agreement are appli cable to taxation measures (Article 170). 
2. Accession and termination 
98. There are no accession provisions in the Agre ement.  Either Party may terminate the 
Agreement but must first notify the other Party in writing one year in advance (Article 176).  
                                                      
29 For the purposes of trade in goods, rules of origin, certificate of origin and customs procedures, and 
bilateral safeguards for goods and cross-border trade in services and entry and temporary stay of nationals for 
business purposes for services.  WT/REG198/4 
 Page 35 
 
 
  3. Institutional framework 
99. Chapter 16 addresses implementation and operation of the Agreement.  The Parties must 
promptly publish laws, regulations, administrative procedures and rulings and judicial decisions of 
general application as well as details of internati onal agreements to which they are a party for any 
matter covered by the Agreement (Article 160).  Provisions are also made for public comment 
procedures (Article 161);  administrative proceedings (Article 162);  review and appeal (Article 163);  
and the disclosure of confidential information (Article 164). 
100. A joint committee composed of Government re presentatives from the Parties was established 
to, inter alia , review the implementation and operation of the Agreement;  serve as a forum for 
consultations;  and supervise the work of Sub-Co mmittees established under Article 165.  The Parties 
have established a contact point to f acilitate communications (Article 166). 
4. Dispute settlement 
101. Chapter 15 sets out procedures on the settlement of disputes relating to the interpretation or 
application of the Agreement.  Articles 151.1 and 151.2 provide a forum election clause for matters 
falling under both the Agreement and any other inte rnational agreement to which both Parties are 
party.  Once the complaining Party has chosen the foru m to settle the dispute, that forum shall be used 
to the exclusion of the others (exclusive forum cl ause).  The clause is not applicable in the case of 
substantially separate and distinct rights or oblig ations under different in ternational agreements. 
102.  A Party may request consultations in writing with the other Party on measures that it 
considers inconsistent with the Agreement.  The Pa rties shall enter into consultations within 30 days 
(15 days for perishable goods) following the da te of receipt of the request (Article 152). 
103. If the Party who received the request does not en ter consultations within 30 days, or the 
Parties fail to resolve the dispute through consulta tions within 60 days, the complaining Party may 
request in writing the establishment of an arbitral tr ibunal (Article 153.1).  The tribunal shall take its 
decisions, including any award, by majority vote (Article 154.7);  the award shall be final and binding 
on the Parties (Article 154.8). 
104. If the tribunal confirms that the Party complained  against has failed to comply with the award 
within an implementation period, the complaining Pa rty may notify the other Party of its intention to 
suspend concessions or other oblig ations under the Agreement (Ar ticle 156.5).  The conditions for 
suspensions listed in Article 156.6 are similar to  Article 22 of the WTO Understanding on Rules and 
Procedures Governing the Settlement of Disputes.  However, the Agreement is more stringent than 
the WTO Understanding in that such suspensions must  cover the same sector or sectors to which the 
nullification or impairment relates.  The Parties share equally the costs of the arbitral tribunal 
(Article 158). 
105. The detailed steps to be taken in the process fo r dispute settlement are described below.  The 
time frame indicated is subject to modification by the Parties' mutual agreement (Article 157).  The 
Parties may also terminate the proceedings at any tim e by joint notification to the chair of the arbitral 
tribunal during its proceedings (Article 155). WT/REG198/4 
Page 36 
 
 
  Table II.11 Synopsis of Dispute Settlement Provisions under the Agreement 
30 days 
(15 days for perishable goods) 
30 days 
Maximum 52 days for 
composition 
(Arts. 153.4, 153.5 and 153.6) 
90 days (Maximum 150 days) 
30 days 
20 days 30 days  
Written request for 
consultations 
(Art. 152.1) 
Consultation  
(Art. 152.2) 
Written request for the 
establishment of arbitral 
tribunal   
 (Art. 153.1)  
Establishment of  arbitral 
tribunal  (Art. 153) 
Rule of procedure  (Art. 159)  
Arbitral tribunal –  
'draft' issued  (Art. 154.4) 
Arbitral tribunal –
'final' issued (Art. 154.5)  
Final and binding (Art. 154.8) notification of  implementation period 
(Art. 156.2) 
Non-implementation 
Non-compliance within the 
implementation period  
(time concern)  –  
consultation for a mutually 
acceptable compensation 
(Art. 156.3)Non-compliance with the 
award (quality concern)  –  
refer to an arbitral tribunal  
 (Art. 156.4)  
Notification of intention to 
suspend concessions or  
other obligations 
 (Art. 156.3)Confirmation of failure to 
comply with the award by the 
arbitral tribunal  
 (Art. 156.5)  
Notification of intention to 
suspend concessions or  
other obligations 
 (Arts. 156.5 and 156.6)  
Arbitral tribunal reconvened 
upon request from losing Party 
 (Art 156.7)  
Arbitral tribunal 
determination  
Binding 
 (Art 156.8)  if unacceptable – refer to an 
arbitral tribunal  
(Art. 156.2)   
               if failed 
30 days 
 
  WT/REG198/4 
 Page 37 
 
 
  5. Relationship with other agreements concluded by the Parties 
106. The Agreement's relationship with other agreemen ts concluded by the Parties is defined in 
Article 167, where the Parties reaffirm their right s and obligations under the WTO Agreement.  In 
particular, the Parties can take any necessary actions  in accordance with Article 22 (compensation and 
suspension of concession) of the WTO Understa nding on Rules and Procedures Governing the 
Settlement of Disputes in line with Chapters 3 (tra de in goods), 7 (investment), and 8 (cross-border 
trade in services).  The Convention on Commerce be tween the Parties signed on 30 January 1969 
expired upon the date of the entry into force of the Agreement, (Article 167.3). 
107. Table II.12 lists all other regional trade agreem ents (RTAs) notified and not notified to the 
GATT/WTO and in force to which Japan and Mexico are party. 
Table II.12 
Japan and Mexico:  Participation in other RTAs (not ified and non-notified in force), as of August 2008  
GATT/WTO Notification Partner/ 
Agreement Date of 
entry 
into force Type of 
agreement Year WTO Provision 
JAPAN  
Brunei Darussalam 31.07.08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Indonesia 01.07.08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Thailand 01.11.07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Chile 03.09.07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Malaysia 13.07.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Singapore 30.11.02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
MEXICO  
Honduras* 01.06.01 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
El Salvador* 15.03.01 Goods & Services  2006 GATT Art. XXIV & GATS Art. V 
Guatemala* 15.03.01 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
EC 01.10.00 Services 2002 GATS Art. V 
EFTA 01.07.00 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
EC 01.07.00 Goods 2000 GATT Art. XXIV  
Israel 01.07.00 Goods 2001 GATT Art. XXIV  
Chile 01.08.99 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
Nicaragua 01.07.98 Goods & Services 2005 GATT Art. XXIV & GATS Art. V 
Costa Rica 01.01.95 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
NAFTA 01.04.94 Goods & Services 1995 GATT Art. XXIV & GATS Art. V 
GSTP 19.04.89 Goods 1989 Enabling Clause 
LAIA 18.03.81 Goods 1982 Enabling Clause 
PTN 11.02.73 Goods 1971 Enabling Clause  
Group of Three (Colombia, Venezuela) 01.01.95** Goods & Services Not notified 
Bolivia 01.01.95 Goods & Services Not notified 
Uruguay 15.07.04 Goods & Services Not notified 
* Mexico-Northern Triangle. 
** Since 19 November 2006, only Mexico and Colombia are members.  
Source: WTO Secretariat.  
 
EFTA:  European Free Trade Area    NAFTA:  North American Free Trade Agreement   
GSTP:  Global System of Trade Preferences     LAIA: Latin American Integration Association 
PTN:  Protocol relating to Trade Negotiations among developing countries WT/REG198/4 
Page 38 
 
 
  6. Government procurement 
108. Chapter 11 on government procurement consists  of 12 Articles and eight related Annexes.  
The Chapter's fundamental principle is national treatme nt in the conduct of government procurement.  
The Parties must immediately and unconditionally provide treatment no less favourable than that 
accorded to domestic goods, services and suppliers  of goods and services to the other Party's goods, 
services and suppliers of these (Article 120.1).  Ot her general principles are the non-application of 
rules of origin that are different from the rules that the Parties appl y in the normal course of trade 
(Article 121), the prohibition of offsets (Article 123) , transparency and confidentiality of information 
(Article 124).  Challenge procedures are laid ou t in Article 125.  A Sub-Committee on Government 
Procurement is established for the purposes of the effective implementation and operation of the 
Chapter (Article 127). 
109. Japan applies procurement procedures under the Agreement in accordance with the provisions 
of the WTO Agreement on Government Procurem ent (GPA) (Articles II, VI-XV and XVIII).  
Mexico, which is not a member of the GPA, fo llows the procedures under the NAFTA (Articles 1002, 
1007-1016). 
110. Annex 11 lists the entities covered: 22 central  government entities, and 126 other entities for 
Japan, and 23 federal government entities and 36 government enterprises for Mexico.  Local 
government entities and sub-federal entities are, how ever, not covered (Japan includes 59 sub-central 
government entities under the GPA).  The Parties must  notify each other when government control, at 
the federal or central government level, over an entit y is effectively eliminated  (Article 129).  Chapter 
11 applies to all goods.  However, for procurem ent by the Japanese Ministry of Defence and the 
Mexican Ministries of National Defence and Navy only the goods specified in Annex 12 are covered 
by the Chapter.  For Mexico, applied scope and co verage are subject to the General Notes in Annex 
16 which includes that, until 1 January of the ninth year following the entry into force of the 
Agreement, Chapter 11 does not apply to the proc urement, by the Ministries of Health, National 
Defence and Navy, the Mexican Social Security In stitute, and the Social Security and Services 
Institute for Government Workers, of drugs that are not currently patented in Mexico or whose 
Mexican patents have expire d (Annex 16, Section 1.7). 
111. For services, Annex 13 contains a positive list fo r each Party of the services covered.  In 
particular, construction services covered are specified  in positive lists for the Parties in Annex 14.  
Annex 15 indicates the applicable thresholds to Jap an which vary for different groups of entities and 
according to the nature of purchases, such as: goods;  services;  construction services;  and 
architectural, engineering and other technical service s.  The thresholds are the same as those under the 
GPA.30  Mexico applies the NAFTA thresholds. 
7. Intellectual property rights 
112. The Agreement does not contain detailed inte llectual property provisions, but intends to 
pursue cooperation in this field.  Such cooperati on may include the exchange of information on: 
increasing public awareness of intellectual property protection;  improving intellectual property 
protection;  enforcement;  and automation of in tellectual property administration (Article 144). 
113. In Article 8 and Annex 3, the Parties confirm their obligation under the TRIPS Agreement to 
protect geographical indications (GI).  Japan's GI s on spirits are for Iki, Kuma, Ryukyu and Satsuma 
                                                      
30 GPA/W/299/Add.5 (8 February 2008).  The thresholds are effective between 1 April 2008 and 
31 March 2010.  WT/REG198/4 
 Page 39 
 
 
  while Mexico has GIs for Tequila, M ezcal, Sotol, Bacanora and Charanda.31  The Parties can propose 
modifications to this list which the Joint Committe e may subsequently adopt (Article 165.2.(e).(i)). 
8. Competition policy 
114. Chapter 12 aims to promote competition to facilitate trade and investment between the 
Parties.  The Parties cooperate to control anti-co mpetitive activities through the fair implementation of 
administrative and judicial procedures.  The Implementing Agreement aims to contribute to the 
effective enforcement of the competition law of  the Parties through cooperation between their 
competition authorities (Articles 132).  It mainly s tipulates notification and consultation obligations  
and cooperation in and coordination of enforcemen t activities (Articles 2, 3, 4, and 9 of the 
Implementing Agreement).  The application of the Pa rties' competition laws a nd regulations shall not 
discriminate against persons on the basis of nationality (Article 133). 
115. This Chapter is not applicable to Article 164 of the Agreement concerning confidential 
information.  However, Article 10 of the Implem enting Agreement further defines how confidential 
information shall be dealt with.  In particular, Japan is not required to provide trade secrets of 
entrepreneurs covered by Article 39 of the Anti monopoly Law to Mexico, except for those provided 
in accordance with Article 4.4 of the Implemen ting Agreement and with the consent of the 
entrepreneurs concerned.  In addition, the dispute settlement procedures of Chapter 15 do not apply to 
the Chapter (Article 135).  Article 6 of the Impl ementing Agreement states avoidance of conflicts 
over the Parties' enforcement activities.  However,  if there is any matter which may arise in 
connection with the Implementing Agreement, the co mpetition authorities of the Parties shall consult 
with each other (Article 9 of the Implementing Agreement). 
 
                                                      
31 Satsuma for Japan and Sotol, Bacanora and Charanda  for Mexico have been added to the list of GIs 
under Decision 8 between the Parties, adopted on 11 April 2007, by the Joint Committee and which came into 
force on 1 March 2008. WT/REG198/4 
Page 40 
 
 
 ANNEX I 
 
Indicators of Trade Liberalization under the Agreement  
  
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the MFN rates applied by Japan and Mexico is shown in Tables A.1 (Japan) and A.2 
(Mexico) below, by total products, agricu ltural products and non-agricultural products. 
Table A.1  
Japan: Indicators of MFN and preferential tariff rates on imports from Mexico 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin 
of goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2005 4.8 8.3 41.7 11.2 15.8 25.8 3.4 6.3 45.6 
Mexico 2005 2.5 12.8 78.6 10.5 16.1 31.2 0.8 8.3 89.9 
 2006 2.4 12.4 78.9 10.3 15.8 31.2 0.8 7.8 89.9 
 2007 2.3 12.0 78.9 10.1 15.5 31.2 0.7 7.3 89.9 
 2008 2.3 12.1 79.6 9.9 15.6 32.9 0.7 7.2 90.3 
 2009 2.2 12.4 80.6 9.7 15.4 32.9 0.6 7.7 91.6 
 2010 2.1 12.7 81.5 9.5 16.4 37.6 0.6 7.3 91.7 
 2011 2.1 12.4 81.5 9.4 16.3 37.6 0.6 6.8 91.7 
 2012 2.0 13.6 83.3 9.3 16.8 40.0 0.5 8.0 93.3 
 2013 2.0 13.4 83.3 9.3 16.7 40.0 0.5 7.7 93.3 
 2014 2.0 16.3 86.0 9.2 16.6 40.0 0.5 15.1 96.7 
 2015 1.8 16.0 87.1 9.2 17.2 42.1 0.3 10.5 97.5 
a  WTO Definition. 
Note:  For tariff lines subject to TRQs only the out-of-quota duty  is included in the tariff-rela ted calculations;  lines with specific duties 
 and the non ad valorem  component of lines with compound and altern ate rates are excluded from the calculations. 
 
Source:   WTO Secretariat estimates ba sed on data provided by Japan. 
 
2. Japan's average applied MFN rate in 2005 was 4.8%;  the average applied tariff on 
agricultural products was roughly three times higher th an that applied to non-agricultural products.  
Duty-free tariff lines account for 41.7% of all tariff lines.  Mexican exporters enjoyed an absolute 
margin of preference of 0.7% for agricultural goods vis-à-vis  the prevailing average MFN tariff in 
2005, and 2.6% for non-agricultural goods.  Overall, Mexican exporters enjoyed an average margin of 
preference of 2.3% vis-à-vis the prevailing average applied MFN tariff, as well as an increase 
(to 78.6%) in the share of Japan's duty-free lines. 
Table A.2 
Mexico: Indicators of MFN and preferenti al tariff rates on imports from Japan 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin 
of goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2005 13.1 15.9 17.7 22.2 25.1 11.3 12.1 14.8 18.4 
Japan 2005 9.7 16.2 39.7 15.0 27.7 45.0 9.2 15.1 39.1 
 2006 8.7 14.4 39.7 14.6 27.0 45.0 8.0 13.2 39.1 
 2007 7.6 12.7 39.7 14.2 26.3 45.0 6.9 11.4 39.1 
 2008 6.6 11.0 39.9 13.9 26.3 46.4 5.8 9.5 39.2 
 2009 5.6 10.7 48.0 13.6 25.8 46.4 4.7 9.1 48.2 
 2010 4.7 9.2 48.5 13.4 27.2 50.0 3.8 7.4 48.3 
 2011 3.9 7.7 48.7 13.3 27.0 50.0 2.9 5.7 48.5 
 2012 3.1 6.3 49.6 13.2 28.3 52.6 2.1 4.1 49.3  WT/REG198/4 
 Page 41 
 
 
  ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin 
of goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
 2013 2.4 4.8 49.6 13.2 28.3 52.6 1.2 2.4 49.3 
 2014 1.6 18.6 90.9 13.1 28.3 52.7 0.4 8.0 95.2 
 2015 1.5 26.5 94.1 13.1 28.5 53.1 0.2 18.3 98.6 
a  WTO Definition. 
Note:  For tariff lines subject to TRQs only the out-of-quota duty  is included in the tariff-rela ted calculations;  lines with specific duties 
 and the non ad valorem  component of lines with compound and alternat e rates are excluded from the calculations.  
 
Source:  WTO Secretariat estimates based on data provided by Mexico. 
 
3. Mexico's average applied MFN rate in 200 5 was 13.1%;  the average applied tariff on 
agricultural products was roughly two times higher th an that applied to non-agricultural products.  
Duty-free tariff lines account for 17.7% of all tariff lines.  Japanese exporters enjoyed an absolute 
margin of preference of 7.2% for agricultural goods vis-à-vis  the prevailing average MFN tariff in 
2005, and 2.9%for non-agricultural goods.  Overall, Jap anese exporters enjoyed an average margin of 
preference of 3.4% vis-à-vis the prevailing average applied MFN tariff, as well as an increase 
(to 39.7%) in the share of Mexico's duty-free lines. 
Table A.3 – Japan: Market access opportunities un der the Agreement for Mexico's top 25 exports 
Access Conditions to Japan's import markets 
MFN (2005) Mexico's top export products in 2002-2004 Number of tariff 
lines Duty-free in 
HS number and description of the product Share in global 
exports (%) Average 
MFN applied 
rate  
(%) Duty-
free Dutiable 2005 2006 2012 
270900 Petroleum oils and oils obtained 
from bituminous minerals, crude. 10.0 --  2  2  
870323 Of a cylinder capacity exceeding 
1,500 cc but not exceeding 3,000 cc 4.4 0.0 1     
852812 Colour 4.0 0.0 2     
854430 Ignition wiring sets and other 
wiring sets of a kind used in vehicles, aircraft or ships 2.6 2.4 1 1 1   
870324 Of a cylinder capacity exceeding 
3,000 cc 2.6 0.0 1     
847160 Input or output units, whether or not 
containing storage units in the same housing 2.2 0.0 4     
870431 g.v.w. not exceeding 5 tonnes 1.8 0.0 1     
847330 Parts and accessories of the 
machines of heading 84.71 1.7 0.0 2     
852520 Transmission apparatus 
incorporating reception apparatus 1.6 0.0 6     
940190 Parts of leather 1.5 1.3 2 1   1 
870829 Other 1.4 0.0 1     
847150 Digital processing units, other than 
those of subheading 8471.41 or 8471.49, whether or not containing in the same housing one or two of 
the following types of unit: storage 
units, input units, output units 1.1 0.0 1     
870421 g.v.w. not exceeding 5 tonnes 1.1 0.0 2     
870899 Other 1.1 0.0 2     
840734 Of a cylinder capacity exceeding 
1,000 cc 1.0 0.0 1     
853710 For a voltage not exceeding 1,000 V 1.0 0.0 1     
847141 Comprising in the same housing at 
least a central processing unit and an input and output unit, whether or 
not combined 0.9 0.0 1     
620342 Of cotton 0.8 9.6  2 2   
847180 Other units of automatic data 
processing machines 0.8 0.0 1     WT/REG198/4 
Page 42 
 
 
 Access Conditions to Japan's import markets 
MFN (2005) Mexico's top export products in 2002-2004 Number of tariff 
lines Duty-free in 
HS number and description of the product Share in global 
exports (%) Average 
MFN applied 
rate  
(%) Duty-
free Dutiable 2005 2006 2012 
852721 Combined with sound recording or 
reproducing apparatus 0.8 0.0 1     
220300 Beer made from malt. 0.7 0.0 1     
620462 Of cotton 0.7 9.6  2 2   
852990 Other 0.7 0.0 1     
851790 Parts 0.6 0.0 2     
870422 g.v.w. exceeding 5 tonnes but not 
exceeding 20 tonnes 0.6 0.0 2     
Total of above 45.7  37 8 5 2 1 
--:  Specific duty. 
 
Source:  WTO Secretariat estimates based on data pr ovided by Japan and UNSD, Comtrade data. 
 
4. Table A.3 shows the market access conditions in Japan for Mexico's top 25 exports, which in 
2002-2004 accounted for 45.7% of its global exports.  Thirty-seven tariff lines were already duty-free 
on an MFN basis.  Out of eight tariff lines which were dutiable, five lines became duty-free upon the 
entry into force of the Agreement;  a further two lines became duty-free in 2006.  The last remaining 
dutiable line which will become duty-free in 2012 relates to leather. 
Table A.4 – Mexico:  Market access opportunities  under the agreement for Japan's top 25 exports 
Access Conditions to Mexico's import markets  
MFN (2005)  Japan's top export products in 2002-2004 
Number of tariff 
lines  Duty-free in  
HS number and description of 
the product  Share in 
global 
exports 
(%) 
Average MFN 
applied rate 
(%) 
Duty-
free Dutiable 2005 2009 2011 2014 Remain 
Dutiable 
870323 Of a cylinder capacity 
exceeding 1,500 cc but 
not exceeding 3,000 cc 6.8 20.0  1   1   
870324 Of a cylinder capacity 
exceeding 3,000 cc 4.2 20.0  1   1   
854221 Digital 3.6 0.0 2 0      
847330 Parts and accessories of 
the machines of 
heading 84.71 2.8 0.0 6 0      
852540 Still image video 
cameras and other video camera recorders; 
digital cameras 1.9 0.0 1 0      
847989 Other 1.6 14.8 5 23 5 1  17  
852990 Other 1.4 3.3 17 6 6     
870840 Gear boxes 
(transmissions) 1.3 13.3  6 2 2  2  
870899 Other 1.3 12.3 2 43 7 21  15  
870322 Of a cylinder capacity 
exceeding 1,000 cc but not exceeding 1,500 cc 1.1 30.0  1   1   
854229 Other 1.0 0.0 1 0      
890120 Tankers 1.0 15.0  2 2     
890190 Other vessels for the 
transport of goods and for the transport of persons and goods 1.0 16.3  4 4     
847160 Input or output units, 
whether or not containing storage units in the same housing 0.9 0.0 14 0       WT/REG198/4 
 Page 43 
 
 
  Access Conditions to Mexico's import markets  
MFN (2005)  Japan's top export products in 2002-2004 
Number of tariff 
lines  Duty-free in  
HS number and description of 
the product  Share in 
global 
exports 
(%) 
Average MFN 
applied rate 
(%) 
Duty-
free Dutiable 2005 2009 2011 2014 Remain 
Dutiable 
870332 Of a cylinder capacity 
exceeding 1,500 cc but not exceeding 2,500 cc 0.9 30.0  1   1   
840991 For use solely or 
principally with spark-ignition internal combustion piston 
engines 0.8 12.0 1 19 9 6  4  
842952 Machinery with a 360° 
revolving superstructure 0.8 5.0 2 1 1     
854140 Photosensitive 
semiconductor devices, 
including photovoltaic cells; light emitting diodes 0.7 0.0 1 0      
870333 Of a cylinder capacity 
exceeding 2,500 cc 0.7 30.0  1   1   
870829 Other 0.7 13.1  24 19 1  4  
852520 Transmission apparatus 
incorporating reception apparatus 0.5 1.2 12 1 1     
853400 Printed circuits. 0.5 0.0 4 0      
853690 Other apparatus 0.5 12.5 2 28 8 8  12  
870421 g.v.w. not exceeding 5 
tonnes 0.5 19.8  4   4   
870422 g.v.w. exceeding 5 
tonnes but not 
exceeding 20 tonnes 0.5 32.7  7   2  5 
Total of above 37.2  70 173 64 39 11 54 5 
 
Source: WTO Secretariat estimates based on data provi ded by Mexico and UNSD, Comtrade data. 
 
5. Table A.4 shows the market access conditions in Mexico for Japan's top 25 exports, which in 
2002-2004 accounted for 37.2% of its global exports.  Seventy tariff lines were already duty-free on 
an MFN basis.  Out of 173 tariff lines which were  dutiable, 64 lines became duty-free upon the entry 
into force of the Agreement;  rates on the remaini ng 109 lines are to be progressively eliminated.  The 
remaining dutiable five lines are related to motor vehicles. 
 
 
  
 
  
 
  
 
  WT/REG198/4 
Page 44 
 
 
 ANNEX II 
 
Tariff-Rate Quotas under the Agreement  
 
1. Tariff rate quotas maintained by the parti es under the Agreement are discussed in the 
following Tables. 
Table AII.1 
Japan: Tariff-rate quotas for products originating in Mexico 
HS Code (description) In quota rate Out of quota rate Quantity 
Meat and edible meat offal 
020120090, 020130010, 020130020, 
020130030, 020130090, 020220000, 020230010, 020230020, 020230030, 020230090, 020610010, 020621000, 
020622000, 020629010, 020629020, 
020629090 
Preparation of meat, of fish or of 
crustaceans, molluscs or other 
aquatic invertebrates 
160250510, 160250520, 160250590, 
160250600, 160250700  0 in 2005 and 2006. 
For 2007-2009 – the rate ranges from 10-40 percent lower than the 2003 applied MFN rate.
a 
Subject to consultation in 2009. MFN 10 metric tonnes (MT) in 2005 and 
2006 increasing annually to 6,000 MT in 2009. Subject to consultation in 2009. 
Meat and edible meat offal 
020312021, 020312022, 020312023, 
020319021, 020319022, 020319023, 020322021, 020322022, 020322023, 020329021, 020329022, 020329023, 020649092, 020649093, 020649099, 
021011010, 021011020, 021012010, 
021012020, 021019010, 021019020
  
Preparation of meat, of fish or of 
crustaceans, molluscs or other aquatic invertebrates 
160241011, 160241019, 160242011, 
160242019, 160249210, 160249220 For HS 0203 and 0206: 
¥482 per kg and above 
depending on the customs value of the import. For HS 0210 and 1602: rates vary depending on 
the customs value of the 
import.
32  Subject to 
consultation in 2009. MFN 38,000 MT in 2005 increasing 
annually to 80,000 MT in 2009.  
Subject to consultation in 2009. 
Meat and edible meat offal 
020711000, 020712000, 020713100, 
020713200, 020714210, 020714220 
Preparation of meat, of fish or of 
crustaceans, molluscs or other aquatic invertebrates 
160231210, 160232210, 160232290, 
160239210  0 in 2005. 
In 2006 10% lower than the 2004 applied MFN 
rate.
a 
In 2007-2009 10-40% lower than the 2004 applied MFN rate.
a 
Subject to consultation in 
2009. MFN 10 MT in 2005 increasing annually 
to 8,500 MT in 2009.  Subject to consultation in 2009. 
Natural honey 
040900000 0 MFN 600 MT in 2005 increasing 
annually to 1,000 MT for each year as from 2009. 
Edible fruit and nuts - Bananas 
080300100  0 
The TRQ to be eliminated 
on 1 April 2015. 9% (MFN 20%) and 
18.1% (MFN: 25%) in 
2005 decreasing annually;  duty-free in 2015 20,000 MT in 2005-2014. 
Edible fruit and nuts – Oranges 
080510000  0 in 2005 and 2006. 
In 2007-2009 50% lower 
than the 2004 applied MFN rate.
a  Subject to 
consultation in 2009. MFN 10 MT in 2005 and 2006 increasing 
annually to 4,000 MT in 2009. 
Subject to consultation in 2009. 
Preparation of vegetables, fruit, 
nuts or other parts of plants 
200290219, 200290229  0 MFN 1,000 MT. 
                                                      
32 For further details, see page 141 in Section 2, Annex 1 of the Agreement.  WT/REG198/4 
 Page 45 
 
 
  HS Code (description) In quota rate Out of quota rate Quantity 
Preparation of vegetables, fruit, 
nuts or other parts of plants 
200911110, 200911190, 200911210, 
200911290, 200912110, 200912190, 200912210, 200912290, 200919110, 200919190, 200919210, 200919290  50 % of the applied MFN 
until 2009.  Subject to 
consultation in 2009. MFN 3,850 MT in 2005 for HS 2009.11 
and 2009.19, increasing annually to 
6,200 MT in 2009.  Subject to 
consultation in 2009.  750 MT in 2005 for HS 2009.12, increasing annually to 1,500 MT in 2009.  
Subject to consultation in 2009. 
Preparation of vegetables, fruit, 
nuts or other parts of plants 
200950200  0 MFN 140 MT. 
Miscellaneous edible preparations 
210320010 0 MFN 800 MT. 
Miscellaneous edible preparations 
210320090  0 MFN 60 MT. 
Organic chemicals 
290544000  0 MFN 600 MT. 
Organic chemicals 
291814000, 291815010 0 MFN 200 MT. 
Albuminoidal substances 
350510200  0 MFN 70 MT. 
Raw hides and skins and leather 
410120212, 410150212, 
410190212, 410411212, 410419212, 
410441122, 410441222, 410449122, 
410449222, 410711222, 410712222, 
410719222, 410791222, 410792222, 410799222  0 
 The TRQs to be eliminated 
on 1 April 2015. MFN 70,000 square metres in 2005 
increasing annually to 145,000 square metres in 2009.  Subject to consultation in 2009 or after, as 
needed. 
Raw hides and skins and leather 
410330200, 410631000, 410632100, 
410632200, 410640211, 410640212, 
410640213, 410640219, 410692110, 410692190, 410711100, 410712100, 410719100, 410791100, 410792100, 410799100, 411200100, 411310100, 
411320100, 411320210, 411320220, 
411330100, 411330211, 411330212, 411330221, 411330222, 411390100, 411390211, 411390212, 411410000, 411510000, 411520000  0 
 
The TRQs to be eliminated 
on 1 April 2012. 2.6%- 21.8% (MFN: 
3%-25%) in 2005 
decreasing annually and 
duty-free in 2012 ¥86,715,000 in 2005 increasing 
annually to ¥258,930,000 in 2011.  
Raw hides and skins and leather 
410441212, 410441219, 410449212, 
410711212, 410711219, 410712212, 410712219, 410719212, 410791212, 410791219, 410792212, 410792219, 
410799212  0 
 The TRQs to be eliminated 
on 1 April 2015. MFN and duty-free in 
2015. 15,000 square metres in 2005 
increasing annually to 31,000 square metres in 2009.  Subject to consultation in 2009 or after, as needed. 
Raw hides and skins and leather 
410530112, 410622112, 411200212, 
411310212  0 
 The TRQs to be eliminated 
on 1 April 2015. MFN and duty-free in 
2015. 15,000 square metres in 2005 
increasing annually to 31,000 square metres in 2009.  Subject to consultation in 2009 or after, as 
needed. 
Raw hides and skins and leather 
411420010, 411420090  0 
 The TRQs to be eliminated 
on 1 April 2012. 17.5% (MFN: 20%) and 
24.5% (MFN: 28%) in 2005 decreasing 
annually and duty-free in 
2012. ¥697,000 in 2005 increasing 
annually to ¥2,082,000 in 2011. 
Articles of leather 
420100000, 420219000, 420239000, 
420299010, 420299020, 420299090, 
420400100, 420400200, 420610000, 
420690000  0 
 The TRQs to be eliminated 
on 1 April 2012. 2.3%-15.7% (MFN: 
2.7%-18%) in 2005 decreasing annually and 
duty-free in 2012. ¥23,522,000 in 2005 increasing 
annually to ¥70,237,000 in 2011. 
Articles of leather 
420211100, 420211200, 420212100, 
420212211, 420212219, 420212220, 
420221110, 420221120, 420221210, 
420221220, 420222100, 420222210, 420222290, 420229000, 420231100, 420231200, 420232100, 420232210, 420232290, 420291000, 420292010, 
420292090 
 
 0  The TRQs to be eliminated 
on 1 April 2012 4%-14% (MFN: 4.6%-
16%) in 2005 decreasing annually and duty-free in 
2012. ¥345,555,000 in 2005 increasing 
annually to ¥1,031,823,000 in 2011. WT/REG198/4 
Page 46 
 
 
 HS Code (description) In quota rate Out of quota rate Quantity 
Miscellaneous manufactured 
articles 
960500000  
Articles of leather 
420500000  0 
 
The TRQs to be eliminated 
on 1 April 2012. 8.7% (MFN: 10%) in 
2005 decreasing 
annually and duty-free in 2012. ¥32,252,000 in 2005 increasing 
annually to ¥96,305,000 in 2011. 
Footwear 
640320012, 640320022, 640330012, 
640330029, 640340012, 640340022, 
640351012, 640351029, 640359019, 640359091, 640359092, 640359093, 640359094, 640359095, 640359099, 640391019, 640391029, 640399015, 
640399016, 640399019, 640399029, 
640419119, 640420119, 640420212, 640420222, 640510119, 640590112, 640590122  0 
 
The TRQs to be eliminated 
on 1 April 2015. MFN and duty-free in 
2015 250,000 pairs in 2005 increasing 
annually to 518,000 pairs in 2009.  
Subject to consultation in 2009 or 
after, as needed. 
Footwear 
640510300, 640520000, 640590200  0 
 
The TRQs to be eliminated 
on 1 April 2012. 2.9% (MFN: 3.4%) in 
2005 decreasing 
annually and duty-free in 2012. ¥26,704,000 in 2005 increasing 
annually to ¥79,737,000 in 2011. 
Glass and glassware 
701810000, 701890010  0 
 
The TRQs to be eliminated 
on 1 April 2012. 5.7% (MFN: 6.6%) and 
7% (MFN: 8%) in 2005 
decreasing annually and 
duty-free in 2012. ¥15,726,000 in 2005 increasing 
annually to ¥46,956,000 in 2011. 
Clocks and watches and parts 
thereof 
911390210  0 
 The TRQs to be eliminated 
on 1 April 2012. 8.7% (MFN: 10%) in 
2005 decreasing annually and duty-free in 
2012. ¥65,018,000 in 2005 increasing 
annually to ¥194,142,000 in 2011. 
Furniture 
940190020  0 
 The TRQs to be eliminated 
on 1 April 2012. 3.3% (MFN: 3.8%) in 
2005 decreasing annually and duty-free in 2012. ¥9,507,000 in 2005 increasing 
annually to ¥28,387,000 in 2011. 
a:  Products for which consultations were held under Article 5.3.(a).(i) of the Agreem ent and resulted in the conclusion of a P rotocol 
 which entered into force on 1 April 2007.  The new in-quota rates are presented in column 2 of Appendix 1. 
 
Source : Section 2, Annex 1 of the Economic Partnership Agreem ent between Japan and Mexico and the related Protocol. 
 
Table AII.2 
Mexico: Tariff-rate quotas for products originating in Japan 
HS Code (description) In quota rate Out of quota rate Quantity 
Meat and edible meat offal 
02012099, 02013001, 02022099, 
02023001, 02061001, 02062101, 02062201, 02062999 
Preparation of meat, of fish or of 
crustaceans, molluscs or other aquatic invertebrates 
16025099BB, 16025099CC 0 in 2005 and 2006. 
In 2007-2009 from 10-40% lower than the 2003 applied MFN rate.
a   
Subject to consultation in 2009. MFN 10 metric tonnes (MT) in 2005 and 
2006 increasing annually to 6,000 MT in 2009.  Subject to consultation in 2009. 
Meat and edible meat offal 
02071101, 02071201, 02071301, 
02071302, 02071303, 02071399, 02071401, 02071403, 02071404, 
02071499 
Preparation of meat, of fish or of 
crustaceans, molluscs or other aquatic invertebrates 
16023101, 16023201, 16023999  0 in 2005. 
In 2006 10% lower than the 2004 applied MFN rate.
a 
In 2007-2009 from 10-40% 
lower than the 2004 applied MFN rate.
a 
Subject to consultation in 2009. MFN 10 MT in 2005 increasing annually 
to 8,500 MT in 2009.   
Subject to consultation in 2009.  
Natural honey 
04090001  0 MFN  
 600 MT in 2005 increasing 
annually to 1,000 MT for each year as from 2009. 
Edible fruit and nuts – Bananas, 
including plantains, fresh 
08030001AA 0 
The TRQs to be eliminated 
on 1 April 2015. Base rate 23% 
decreasing annually;   
duty-free in 2015. 20,000 MT in 2005-2014.  WT/REG198/4 
 Page 47 
 
 
  HS Code (description) In quota rate Out of quota rate Quantity 
Edible fruit and nuts - Oranges 
08051001 0 in 2005 and 2006. 
In 2007-2009 50% lower  
than the 2004 applied 
MFN rate.a  Subject to 
consultation in 2009. MFN 10 MT in 2005 and 2006 increasing 
annually to 4,000 MT in 2009.  
Subject to consultation in 2009. 
Tomato puree and tomato paste for 
the manufacture of tomato ketchup and other tomato sauces 
20029099AA 0 MFN 1,000 MT. 
Preparations of vegetables, fruit, 
nuts or other parts of plants 
20091101, 20091201, 20091299, 
20091901, 20091999 50% of the applied MFN. 
Subject to consultation in 2009. MFN 3,850 MT in 2005 for HS 2009.11 
and 2009.19, increasing annually to 6,200 MT in 2009.  Subject to consultation in 2009.  750 MT in 2005 for HS 2009.12, increasing 
annually to 1,500 MT in 2009.  
Subject to consultation in 2009. 
Tomato juice, not containing added 
sugar 
20095001AA 0 MFN 140 MT. 
Miscellaneous edible preparations 
21032001  0 MFN 800 MT. 
Miscellaneous edible preparations 
21032099 0 MFN 60 MT. 
Organic chemicals 
29054401  0 MFN 600 MT. 
Organic chemicals 
29181401, 29181505  0 MFN 200 MT. 
Albuminoidal substances 
35051001  0 MFN 70 MT. 
Raw hides and skins and leather 
41041101, 41041102, 41041199, 
41041901, 41041902, 41041999, 41044101, 41044199, 41044901, 41044999, 41053001, 41062201, 
41071101, 41071199, 41071201, 
41071299, 41071901, 41071999, 41079101, 41079201, 41079901, 41079999, 41120001, 41131001  0 in 2005-2009. 
Subject to consultation for 
2010-2014. 
The TRQs to be eliminated 
on 1 April 2015. 
 MFN and duty-free in 
2015. 100,000 square metres in 2005 
increasing annually to 207,360 square metres in 2009.   
Subject to consultation for 2010-
2014. 
Footwear 
64032001, 64033001, 64034001, 
64035101, 64035102, 64035199, 64035901, 64035902, 64035999, 64039101, 64039103, 64039199, 64039901, 64039903, 64039904, 
64039905, 64039999, 64042001, 
64051001 0 in 2005-2009. 
Subject to consultation for 
2010-2014. 
The TRQs to be eliminated 
on 1 April 2015. 
 MFN and duty-free in 
2015. 250,000 pairs in 2005 increasing 
annually by 518,000 pairs in 2009.  
Subject to consultation for 2010-2014. 
Raw hides and skins and leather 
41063101, 41063201, 41064099AA, 
41069201, 41132001, 41141001, 
41142001, 41151001, 41152001 
Articles of leather 
42010001, 42021101, 42021201, 
42021202, 42021999, 42022101, 42022201, 42022202, 42022999, 
42023101, 42023201, 42023202, 
42023999, 42029101, 42029201, 42029202, 42029999, 42040001, 42050099, 42061001, 42061099, 
42069099 
Footwear 
64052001, 64052002, 64052099, 
64059001, 64059099 
Furniture 
94019001  0 in 2005-2011. 
The TRQs to be eliminated 
on 1 April 2012. 
 Base rates vary;  
decreasing annually and 
duty-free in 2012. US$5 million in 2005 increasing 
annually to US$14.9 million in 
2011. 
 WT/REG198/4 
Page 48 
 
 
 HS Code (description) In quota rate Out of quota rate Quantity 
Iron and steel 
72085201, 72085301, 72085401, 
72155099, 72222001 72230001, 
72254099, 72281001, 72283099, 72285099 
Articles of iron or steel 
73012001, 73043105, 73043199, 
73043999, 73045199, 73045904, 
73045905, 73045910, 73045999, 73049099, 73053902, 73053999, 73063099, 73064001, 73064099, 73066099, 73079101, 73079299, 
73079999, 73269099 0 MFN until 2009 
decreasing annually and 
duty-free in 2015. 
 Not less than 10,000 MT provided 
that the goods meet the conditions 
under Mexico's Sectoral Promotion 
Programme (PROSEC). 
Motor cars and other motor 
vehicles for the transport of 
persons;  Motor vehicles for the transport of goods 
87021001AA, 87021002AA, 
87021003AA, 87021004AA, 
87029002AA, 87029003AA, 
87029004AA, 87029005AA, 87041099AA, 87042201AA, 87043201AA, 87049001AA, 87049099AA, 87032199, 87032201, 
87032301, 87032401, 87033101, 
87033201, 87033301, 87039001, 87039099, 87042101, 87042102, 87042103, 87042199, 87042202, 87042203, 87043101, 87043103, 
87043199, 87043202, 87043203  0 
The TRQs to be eliminated 
on 1 April 2011.  
 11.1%-25.7% (MFN: 
10%-50%) in 2005 
decreasing annually and duty-free in 2011. 5% of domestic sales in the 
previous year. 
a: Products for which consultations were he ld under Article 5.3.(a).(i) of the Agreem ent and resulted in the conclusion of a Pr otocol 
 which entered into force on 1 April 2007.  The new in-quota rates are presented in column 2 of Appendix 2. 
 
Source : Section 3, Annex 1 of the Economic Partnership Agreem ent between Japan and Mexico and the related Protocol. 
 
__________